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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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Ben sold his townhome on March 12. The property is subject to an HOA fee of $355 per month, which Ben prepaid for the month of M
Dvinal [7]

Answer:

$213

Explanation:

For computing the owed amount, first we have to compute the daily rate per day which is shown below:

= HOA fee ÷ number of days in a month

= $355 ÷ 30 days

= 11.83 per day

We know that the number of days in a month is 30 days and the townhome is sold on March 12, so the remaining days would be 18 days ( 30 days - 12 days of march month)

Now the owed amount would be

= Remaining days × per day rate

= 18 days × 11.83

= $213

8 0
3 years ago
Alternative workplaces are intended to a. limit the flexibility employees have in scheduling work. b. accommodate a narrower ran
Eduardwww [97]

Alternative workplaces are intended to enhance employee motivation and performance.

<h3>What is alternative workplace?</h3>

Alternative workplace are provisions made b a company to its employees, to carryout their routine duties other than their normal offices. This tends to give freedoms to workers in carrying out their duties.

The purpose of alternative workplace is to break the bond between workplace and work performance.

Hence, alternative workplaces are intended to enhance employee motivation and performance.

Learn more about alternative workplace here : brainly.com/question/20412413

6 0
2 years ago
Another company plans to issue 20-year bonds with a face value of $1,000 and an annual coupon rate of 10%. The market price of s
Lorico [155]

The after-tax cost of debt is 6.28%.  Subtract a company's effective tax rate from one and multiply the difference by its cost of debt to calculate its after-tax cost of debt.

<h3>What is After-tax cost?</h3>
  • After-tax cost denotes the actual costs less an amount equal to the combined federal and state income tax savings relating to the deductibility of said costs for federal and state tax purposes in the year in which such costs are incurred.
  • WACC represents a company's average after-tax cost of capital from all sources, including common stock, preferred stock, bonds, and other forms of debt.
  • WACC is the average interest rate that a company anticipates paying to finance its assets. The pre-tax cost of debt must be tax-affected because interest is tax-deductible, effectively creating a "tax shield" that is, interest expense reduces a company's taxable income (earnings before taxes, or EBT).

Therefore,

The after-tax cost of debt is 6.28%.

FV = -$1,000

PMT = -$100

N = 20 years

PV = $1,098 before including flotation costs; $1,098×(1-.05) = $1,043.10 after including flotation costs.

Compute I/Y = 9.511%

After-tax cost of debt = 9.511%×(1-.34) = 6.28%

To learn more about After-tax cost, refer to:

brainly.com/question/25790997

#SPJ4

6 0
2 years ago
Your grandparents offer you $500 in one year. Assuming no inflation, if the interest rate is 10%, you areindifferent between the
LUCKY_DIMON [66]

Answer:

PV=454.54

Explanation:

This problem can be solved applying the concept of future value, the 500 represents money in the future an the 10% is how that money is valued over time

FV=PV*(1+i)^{n}

where FV is future value, PV is the present value, i is the periodic interest rate and n is the number of periods. So applying to this particular problem we have:

500=PV*(1+0.1)^{1}

solving for PV we have:

PV=454.54

5 0
3 years ago
A service is any intangible offering that involves a deed, performance, or effort that
lisov135 [29]

Answer: cannot be physically possessed (B)

Explanation:

A service is a transaction where there is no transfer of physical goods from the seller to the buyer. Services are the action performed by an individual or firm for another person and are intangible in nature.

The satisfaction derived from a service are seen by the buyers willingness to pay for the service rendered to him or her. Public services are the services that the society pays for. Examples of services are car repair, haircuts, mail delivery, medical check-ups, and teaching.

7 0
3 years ago
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