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Savatey [412]
3 years ago
9

The fastener division of Southern Fasteners manufactures zippers and then sells them to customers for $7.60 per unit. Its variab

le cost is $3.01 per unit, and its fixed cost per unit is $1.28. Management would like the fastener division to transfer 11,600 of these zippers to another division within the company at a price of $3.01. The fastener division could avoid $0.41 per zipper of variable packaging costs by selling internally. Determine the minimum transfer price. (a) Assuming the fastener division is not operating at full capacity. (Round answer to 2 decimal places, e.g. 10.50.) Minimum transfer price $ 7.60 (b) Assuming the fastener division is operating at full capacity. (Round answer to 2 decimal places, e.g. 10.50.) Minimum transfer price $
Business
1 answer:
andreev551 [17]3 years ago
7 0

Answer:

The correct answer for option (a) is $2.6 and for option (b) is $7.19.

Explanation:

According to the scenario, the given data are as follows:

(a). If fastener division is not operating at full capacity,

then, opportunity cost = $0

Here, variable cost = $3.01

Fastener could avoid $0.41.

Then Variable cost = $3.01 - $0.41 = $2.6

So, we can calculate the minimum transfer price by using following formula:

Minimum transfer price = Variable cost + Opportunity cost

= $2.6 + $0

= $2.6

(b). If fastener division is operating at full capacity,

then, opportunity cost = $7.60 - $3.01 = $4.59

Here, variable cost = $3.01

Fastener could avoid $0.41.

Then Variable cost = $3.01 - $0.41 = $2.6

So, we can calculate the minimum transfer price by using following formula:

Minimum transfer price = Variable cost + Opportunity cost

= $2.6 + $4.59

= $7.19

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When Benjamin purchased a camera at Best Buy, the cashier asked him for his home zip code. Which of the following approaches was
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Answer:

The correct answer is E) Customer spotting .

Explanation:

The detection of needs in the sale is the third step, of the six that must be taken to increase the possibilities of selling.

The detection of needs consists specifically in asking your client a series of questions that you have to have prepared in advance, in order to discover:

  1. What are the real needs they have
  2. If the products or services you have in your portfolio are suitable for what you need.

Not carrying out a correct detection of needs forces you to walk blindly and thus lose many chances of achieving success.

Keep in mind, that it is in this step where it is most important that you pay attention and listen to what the client has to say.

4 0
3 years ago
The importance of flower farming is increasing day by day in nepal. Justify this statement. please write long ans​
devlian [24]

Answer:

Prior to 1990, there were a number of nurseries within the valley as well as a few outside that cultivated flowers, but the trend then was more towards producing potted plants, seeds, bulbs and suchlike. There was no large market for cut flowers of the variety available now, in part because there was very little demand due to a lack of market exposure to cut flowers. People in Kathmandu just did not use them on a regular basis. According to nursery owners, there was at that time only a small demand amongst the expatriate community and amongst the Indian community. On November 15 1992 however, the Floriculture Association of Nepal or FAN was formed, and this marked the beginning of the floriculture industry in Nepal.

FAN was formed by 11 nursery owners with the objective of promoting and enhancing the floriculture industry and the emergence of flowers in the Katmandu market can in fact be attributed to the training in flower arrangement that FAN conducted in 1993. Following this training, they initiated the opening of a wholesale market and the support FAN gave to the organization 'Women in Floriculture' project enabled several entrepreneurs to set up flower retail outlets. This supply driven demand resulted in flowers being made available in the market and the market responded by taking up this supply. Business has since improved as demonstrated by the change in demand from around 100 rose stems a day in 1992 to 3000 stems in 2003 and from 100 gladiolus stems  in 1992 to 6000 in 2003. Figures from FAN put the total sale of cut flowers at 10 million in 1992, which went up to 70.2 million in 2003.

The domestic market for cut flowers is in fact increasing according to Suresh Bhakta Shrestha of Standard Nursery in Bansbari. He says that in 1993 150 thousand Nepali Rupees was the total turnover for all the shops that sold flowers in Kathmandu. This figure is now around 80 to a 100 thousand Rupees per month per shop! Latest figures also suggest that there are there are currently around 300 nurseries and 40 retail shops within the Kathmandu valley. This information suggests that floriculture has grown very rapidly and that the flower culture here continues to grow.

Explanation:

6 0
3 years ago
Suppose that you observe a market with four firms, each with about 25% market share. What does it suggest about the following at
emmasim [6.3K]

level of differentiation across the firm's offerings

Answer: Option C.

<u>Explanation:</u>

Differentiation are the differences that a firm might offer to his customers and clients. These differences make the firms different from each other which exist in the market.

More different and innovative practices that a firm has compared to the competitors, more successful it would be in the market and would have more customers attracted towards it because of the innovation and the differentiation.

8 0
3 years ago
Aaron, Deanne, and Keon formed the Blue Bell General Partnership at the beginning of the current year. Aaron and Deanne each con
Nana76 [90]

Answer:

As attached.

Explanation:

4 0
3 years ago
According to Michael Porter, a firm practicing a niche strategy:
Maslowich

Answer:

b. Dominates a particular target market although its overall market share may be low.

Explanation:

  • A niche strategy of the porter was to come with the product that fills the market segment and is characterized by the narrow specialization of the services focusing on a specific need.
4 0
3 years ago
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