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UkoKoshka [18]
3 years ago
6

Division A manufactures an aircraft engine component with unit variable product cost of $38 and market price of $50. Division A

incurs shipping costs of $3 per unit for sales to outside parties only. Division B uses this component in the manufacture of its own engine production activities. Top management allows negotiated transfer pricing. If Division A is operating at full capacity, the maximum transfer price (the ceiling of the bargaining range) is: a. $38. b. $50. c. $44. d. $47. e. There is no bargaining range.
Business
1 answer:
olya-2409 [2.1K]3 years ago
7 0

Answer:

The maximum transfer price would be $50.

Explanation:

The maximum transfer price is nothing but the market price for the product , which is the most simple way to derive a transfer price . Here by selling the components of aircraft engines at market price, there are very good chances of high profits to be earned. So the maximum transfer price should be $50.

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The current price of the stock = $20

<h3>What is  stock?</h3>

The division of ownership of a corporation or company into shares is known as stock. Depending on the total number of shares, one share of stock represents a fractional ownership interest in the company.

<h3>What is mathematical operation?</h3>

An operation is a function in mathematics that converts zero or more input values, also known as operands, into a clearly defined output value. The operation's complexity is determined by the number of operands, sometimes referred to as arguments.

<h3>According to the given information:</h3>

The earnings per share of a stock is  = $2

the current price/earnings (p/e) ratio is =  10

the current price of the stock = P/E

                                             10 = P/2

                                               P = 10*2

                                                P = 20

The current price of the stock = $20

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3 0
2 years ago
It costs Waterway Industries $28 of variable costs and $14.40 of allocated fixed costs to produce an industrial trash can that s
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Special request income 33,000

Explanation:

special request:

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variable cost:

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<u>Contribution margin 33,000</u>

special cost:              <em>none</em>

additional fixed cost:   <em>none</em>

Special request income 33,000

Notice:

Non additional shipping or setup cost is request for the order.

Non increase in fixed cost due to excess capacity.

If any of this concept do inccur in additional cost, it should be relevant as well in the calculations.

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6 0
4 years ago
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Rina8888 [55]

Answer:

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Explanation:

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We can then calculate the Yield to Maturity (YTM) of the Bonds as follows :

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Using a Financial Calculator to input the values as above, we get a YTM of 5.54 %

8 0
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juin [17]

Answer:

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