Prove you know what diminishing marginal utility is by creating an example of your own. Your example
1 answer:
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Transfer price is an alternative term of opportunity cost.
$ 289.66 is the transfer price can be utilized for transport costs, loading and unloading costs, and administrative costs
solution
Transfer cost is the Total opportunity cost of moving an item from one place to another, including transport costs, loading and unloading costs, and administrative costs. Transfer price is an alternative term of opportunity cost.
Total variable cost = 740,000× $220 = 162,800,000
Total fixed cost = $3,950,000
Total selling cost = 740,000 × $515 = $381,100,000
Transfer cost = (selling cost - (variable cost + Fixed cost )
= ($381,100,000- ($162,800,000 + $3,950,000) = $214,350,000
Transfer price = $214,350,000 ÷ 740,000 units = $ 289.66
Answer:
A. 0%
Explanation:
The expected rate of return of A = 11%
Expected rate of return of B = 7%
Risk free rate = rfr = 5%
Sdb = 3%
SDa = 18%
Correlation coefficient = 0.50
The formula used to solve for the required answer is in the attachment.
When computed, we have
0.000054-0.000054/0.000036+0.000216
= 0/0.000252
= 0
Therefore the first option is the correct answer
0% should be invested in stock A.
