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Svetach [21]
4 years ago
13

Materials used by Square Yard Products Inc. in producing Division 3's product are currently purchased from outside suppliers 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 would Division 3's income from operations increase?
Business
1 answer:
sammy [17]4 years ago
4 0

Answer:

Increase in income from Operations = $72,000

Explanation:

Current cost of purchasing the inventory = $5 per unit.

Purchase price if bought from Division 6 = $3.20

Net benefit on each unit = $5 - $3.20 = $1.80

Number of units purchased = 40,000

Net savings in Expense of purchase of raw material, which will result in increase in income from operation's by = 40,000 \times $1.80

= $72,000.00

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dimaraw [331]

The he type of economy where the government controls some production means, but not all of it is a mixed economy.

<h3>Types of economic systems:</h3>

Five distinct types of economic systems have been recognized, including:

  • Traditional
  • Command
  • Centrally planned
  • Free Market
  • Mixed

<h3>Characteristics of a mixed economy</h3>
  • Private property and self-interest are protected.
  • Free market activities are allowed.
  • Prices of goods and services are determined by the laws of supply and demand.
  • Government still intervenes in the means of production.

Thus, the type of economy where the government controls some production means, but not all of it is a mixed economy.

Learn more about economic systems here: brainly.com/question/491016

8 0
3 years ago
An increase in aggregate demand when the economy is operating at high levels of output is likely to result in:_____.
yanalaym [24]

Answer:

an increase in the overall price level but little or no increase in output.

3 0
2 years ago
What is one way that critical thinking can help in career exploration?
Llana [10]
Becoming aware of your assumptions and becoming open to different points of view can help you demonstrate respect for various approaches to work tasks and styles, making it easier for you to build relationships and be successful with others in your career.
8 0
3 years ago
Read 2 more answers
Consider a mutual fund with $219 million in assets at the start of the year and with 12 million shares outstanding. The fund inv
Ghella [55]

Answer:

Missing word <em>"What is the Rate of return"</em>

a. Asset at the end of the year = (Asset at the start of the year + Increase in value) * 12b-1 charges

Asset at the end of the year = ($219 million+ ($219 million * 7%)) * (1-0.50%)

Asset at the end of the year = ($219 million + $15.33 million) * 0.9950

Asset at the end of the year = $234.33 million * 0.9950

Asset at the end of the year = $233.16 million

Net asset value at the end of the year = Asset at the end of the year / Number of shares

Net asset value at the end of the year = $233.15835 million / 12 million

Net asset value at the end of the year = $19.430

b. Rate of return = (Net asset value at the end of the year + dividend per share - Net asset value at the start of the year) / Net asset value at the start of the year

Rate of return = ($19.430 + ($6 / 12) - $18.250) / $18.250

Rate of return = ($19.430 + $0.50 - $18.250) / $18.250

Rate of return = $1.68 / $18.250

Rate of return = 9.20%

5 0
3 years ago
Countess Corp. is expected to pay an annual dividend of $5.29 on its common stock in one year. The current stock price is $79.83
Nostrana [21]

Answer:

10.03%

Explanation:

Using the dividend discount formula, find the cost of equity; r

r = \frac{D1}{P0} +g

whereby,

D1 = Next year's dividend = 5.29

P0 = Current price of the stock = 79.83

g = growth rate of dividends = 3.40% or 0.034 as a decimal

Next, plug in the numbers to the formula above;

r = \frac{5.29}{79.83} +0.034\\ \\ r =0.06627 + 0.034\\ \\ =0.10027

As a percentage, r = 10.03%

Therefore, the company's cost of equity is 10.03%

7 0
3 years ago
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