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Alenkinab [10]
2 years ago
12

Wetherald Products, Inc., has a Pump Division that manufactures and sells a number of products, including a standard pump that c

ould be used by another division in the company, the Pool Products Division, in one of its products. Data concerning that pump appear below: Capacity in units 64,500 Selling price to outside customers $ 120 Variable cost per unit $ 72 Fixed cost per unit (based on capacity) $ 30 The Pool Products Division is currently purchasing 5,900 of these pumps per year from an overseas supplier at a cost of $93 per pump. Assume that the Pump Division is selling all of the pumps it can produce to outside customers. What should be the minimum acceptable transfer price for the pumps from the standpoint of the Pump Division
Business
1 answer:
Ad libitum [116K]2 years ago
5 0

Answer:

$120 per unit

Explanation:

The computation of minimum acceptable transfer price is shown below:-

If the division of the transferor does not have spare capacity, the minimum transfer price is equal to variable cost per unit and the contribution margin per unit

Minimum transfer price = Variable cost per unit + (Selling price to outside customers - Variable cost per unit)

= $72 + ($120 - $72)

= $72 + $48

= $120 per unit

Therefore for computing the minimum transfer price we simply applied the above formula.

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Financial Institutions are described as having an asset transformation function. Explain this function and describe how a bank t
anyanavicka [17]

Answer:

In simple words, Asset transformation can be understood as the process of turning small denominational, instantly available, and generally riskless deposit accounts into lenders moderately risky, high denomination assets that are returned according to a specified schedule–from obligations (deposits) with distinct traits.

4 0
2 years ago
Opportunity recognition is the process of identifying, ________, and developing new venture opportunities.
brilliants [131]

Answer:

Selecting

Explanation:

The answer has been added into the question in this paragraph. It is in bold letters. Opportunity recognition is the process of identifying, <u>selecting</u>, and developing new venture opportunities.

when we talk about opportunity recognition we are talking about the ability to perceive new ideas, opportunities for a business or venture. as well as also being on the lookout for ways to improve. a person could just come up with new money making venture, or he could come up with ways to improve an existing venture.

3 0
3 years ago
The budgeted variable selling and administrative expense is calculated by multiplying the budgeted unit sales by the variable se
postnew [5]

Answer: True

Explanation:

Variable selling and administrative expenses increase with the number of sales so in order to get them, one needs to multiply the number of sales by the variable and administrative expenses.

This also goes for the budgeted variable selling expenses. To find out these costs, multiply the expected variable and admin expenses by the budgeted number of sales. The amount you get will show the amount of variable expenses to budget based on the sales you budgeted.

3 0
2 years ago
Abarrier along the open sides of stairways and platforms that prevent falling is
kotykmax [81]
Stair rails is a barrier along the open sides of stairways and platforms that prevent falling is
4 0
3 years ago
Amanda's Interior Design has credit sales of $783,000, costs of goods sold of $418,000, and average accounts receivable of $107,
posledela

Answer:

The 50.30 days are required to take its credit customers to pay for their purchases.

Explanation:

For computing the average collection period, we have to use the formula of the average collection period.

Average collection period = Average accounts receivable ÷ Credit sales × total number of days in a year

= $107,900 ÷ $783,000 × 365

= 0.13780 × 365

= 50.30 days

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The cost of goods sold is irrelevant. Thus, it is not considered in the computation part.

Hence, 50.30 days are required to take its credit customers to pay for their purchases.

5 0
3 years ago
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