1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
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

You might be interested in
Indicate which activities of Stockton Corporation violated the rights of a stockholder who owned one share of common stock
uysha [10]

Stockton Corporation violated the rights of a stockholder who owned one share of common stock by paying the stockholder a smaller dividend per share than another common stockholder or rejecting the stockholder's sale of stock on an organized exchange and the stockholder's request to vote via proxy because she was home sick.

<h3>What are the reasons for violation?</h3>

A shareholder is a person who purchases shares in a firm that is publicly traded. They are known as owners and are qualified to receive dividends. Dividends represent a percentage of income.

Dividends paid to common shareholders are equal for all.

Greater preference is given to preferred shareholders than to regular stockholders.

To learn more about this Stockton problem visit:

brainly.com/question/22950605

#SPJ4

5 0
11 months ago
Meacham Enterprises' bonds currently sell for $1,280 and have a par value of $1,000. They pay a $135 annual coupon and have a 15
asambeis [7]

Answer:

The answer is d. 7.45%

Explanation:

B = Current Price of the Bonds  $1,280

C = Coupon payment paid out annually  $135

CP = Call price   $1,050.

T= number of years pending until the call date 5 years

Yield to Call Formula = (C/2) * {(1- ( 1 + YTC/2)^-2t) / (YTC/2)} + (CP/1 + YTC/2)^2t)

$1,280  = ($135/2) * {(1- ( 1 + YTC/2)^-10) / (YTC/2)} +($1,050 /1 + YTC/2)^10) = 7.45%

7 0
3 years ago
Part of the Lands' End business model includes purchasing products and then selling them again without any reprocessing. Lands'
hodyreva [135]
Part of the lands' end business model includes purchasing products and then selling them again without any reprocessing. Lands' end is operating in the reseller market.
This company doesn't use the goods it has bought - it just sells it again to another company so as to get some profit.
3 0
3 years ago
A firm produces and sells two goods, A and B. Good A is known to have many close substitutes; good B makes up a significant port
stepan [7]

Answer:

d. Decrease and total revenues from good B to decrease

Explanation:

Goods that have many substitutes and goods that makes up a significant portion of most families' budgets usually have an elastic demand.

Elastic demand means quantity demanded is sensitive to changes in price.

A good with many close substitute can easily be replaced because it has many goods that are similar to it.

If the price of the good with many close substitutes is increased, consumers would reduce qunatity demanded of the good and begin to demand for more of its many close substitutes. As a result, total revenue of seller of the good with many substitutes would fall.

A good that takes up a significant amount of a familys budget means that it cost the family a lot to acquire the good. If price of this good is increased, the family would be sensitive to the price increase and reduce their quantity demanded. As a result, the total revenue of the seller would fall.

I hope my answer helps you

4 0
3 years ago
Suppose that the nominal rate of interest is 7% and the expected inflation rate is 3% then the real rate of interest is equal to
NeX [460]
Amoreandrusamoreandrus
5 0
3 years ago
Other questions:
  • Some entrepreneurs Invent Innovative
    7·1 answer
  • You determine that a robot welder is malfunctioning on your assembly line because final inspection has revealed a loose connecti
    13·1 answer
  • Huron Company produces a commercial cleaning compound known as Zoom. The direct materials and direct labor standards for one uni
    5·1 answer
  • You are an employee of University Investment Consultants, Ltd. and have been given the following assignment. You are to present
    8·1 answer
  • Gallo Light began operations in 2021. The company sometimes sells used warehouses on an installment basis. In those cases, Gallo
    13·1 answer
  • ___ is the ability of each organization's information system to work with the other, sharing both data and services.
    9·1 answer
  • Cherokee Inc. is a merchandiser that provided the following information: Number of units sold 20,000, Selling price per unit $30
    6·1 answer
  • High-school athletes who skip college to become professional athletes a. obviously do not understand the value of a college educ
    9·2 answers
  • Stewart, a construction worker, fell from a beam and suffered serious injuries. He sued his employer, Sunrise Construction, for
    8·1 answer
  • If there is no written designated agency relationship, a client of Meramac Realty has what kind of relationship with Meramac
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!