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IrinaK [193]
3 years ago
9

CalculatorMaterials used by Square Yard Products Inc. in producing Division 3's product are currently purchased from outside sup

pliers at a cost of $5 per unit. However, the same materials are available from Division 6. Division 6 has unused capacity and can produce the materials needed by Division 3 at a variable cost of $3 per unit. A transfer price of $3.20 per unit is established, and 40,000 units of material are transferred, with no reduction in Division 6's current sales.How much will Division 3's income from operations increase
Business
1 answer:
frosja888 [35]3 years ago
6 0

Answer:

Total increase in operating income = $1.80 \times 40,000 units = $72,000.

Explanation:

Division 6 can produce the product required by Division 3 at the variable cost of $3.00 since it has an ideal capacity left, thus no other fixed cost will be incurred.

Further provided Division 3 buys it from outside suppliers at the rate of $5.00, now it can buy from Division 6 at the rate of $3.20 per unit.

Therefore it will save about $5.00 - $3.20 = $1.80 per unit, which will increase its operating income with the same, therefore

Total increase in operating income = $1.80 \times 40,000 units = $72,000.

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B

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As the owner of La Boulangerie Bakery in Baton Rouge, Louisiana, you have a devoted clientele savoring your delicacies. Your sal
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Answer:

La Boulangerie Bakery,

Baton Rouge,

Louisiana, U.S.A

25th April, 2021

Dear esteemed customers,

I bring to you an unpalatable news about the changes that would be initiated in our business approach to our customers.

As you can bear witness to, there has been a drastic increase in the cost of doing business in our industry with the notable changes being in the wheat used in producing our confectioneries, the sugar as well as the rising cost of transportation to various customers' locations.

Taking this into account, our company decided to introduce a flat rate delivery cost of $20 irrespective of the location of our customers. This would help us to minimize our production cost. Inorder to also consider our customers, there is a free 20 pieces cake (box) offered to every customer who buys 50 box of each product. This means, 50 box of cupcakes earns you one box free, 100 box cupcake purchase earns you 2 free boxes.

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Sincerely,

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Explanation:

3 0
2 years ago
In doing "aggregate planning" for a firm producing paint, the aggregate planners would most likely deal with:
Gennadij [26K]

Answer:

The answer is option D) In doing "aggregate planning" for a firm producing paint, the aggregate planners would most likely deal with: all the different sizes and all the different colors by size.

Explanation:

Aggregate planning is concerned with forecasting the needs operational needs of an organization and making provisions for them ahead of time.

Aggregate planners develop, analyze, and draft an estimated schedule of the overall operations of an organization.

This estimated schedule contains targeted sales forecasts, production levels, inventory levels, and customer backlogs.

In doing "aggregate planning" for a firm producing paint, the aggregate planners would most likely deal with: all the different sizes and all the different colors by size.

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8 0
3 years ago
Your organization entered into an interoperability agreement (IA) with another organization a year ago. As a part of this agreem
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Answer:

1)Verify compliance with the IA documents

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7 0
2 years ago
Fitz Company reports the following information.
Paha777 [63]

Answer and Explanation:

The preparation of the operating activities section is presented below:

Cash flows from operating activities

Net income  $374,000

Adjustments made  

Add: Depreciation  $44,000

add: Amortisation expanses  $7,200

Add: Accounts receivable decrease  $17,100

Add: Inventory decrease  $42,000

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Add: Wages payable increases  $1,200

Less: Gain on sale of machinery  -$6,000

Net cash provided by operating activities  $466,600

4 0
2 years ago
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