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3 years ago

Division X makes a part with the following characteristics:

Business

1 answer:

Gemiola [76]3 years ago

8 0

Answer:

Amount to be lost= $60,000

Explanation:

The Division X is operating at less than full capacity, hence it has excess capacity

This implies that it can produce enough to meet both the internal and external buyers. In this situation, the minimum transfer will be

minimum transfer price= Variable cost= $11

If Division X refuses to accept $17, the company has a whole will lose

amount paid by Division Y to the external supplier in excess of $11 .

Amount to be lost = (17-11)× 10,000

= $60,000

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3 years ago

Brief Exercise 24-2 Hsung Company accumulates the following data concerning a proposed capital investment: cash cost $216,758, n

Tanzania [10]

Answer:

Net Present Value = $12,400

Since net present value is positive, the investment shall be made.

Explanation:

Capital outlay = $216,758

Cash inflow every year = $43,900

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Net Present Value measures the net effect of an investment discounted at current rate of interest, i.e. cost of capital.

Final Answer

Net Present Value = $12,400

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3 years ago

What is the difference between an "increase in demand" and an "increase in quantity demanded"?

alekssr [168]

A shift to the right of the demand curve signifies a "increase in demand," whereas movement along a particular demand curve signifies a "increase in quantity demanded." The correct response is option (B).

<h3>What is increase in demand?</h3>

A rise in demand will cause a rise in the equilibrium price and an increase in supply, all other things being equal. Reduced demand will result in a decrease in the equilibrium price and an increase in supply.

An rise in the quantity needed results from a decrease in the cost of the good (and vice versa). A demand curve depicts the amount desired and any market price. A change in quantity demanded is represented as a shift along a demand curve.

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1 year ago

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andriy [413]

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