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Nikolay [14]
3 years ago
9

Genesis Scents has two divisions: the Cologne Division and the Bottle Division. The Bottle Division produces containers that can

be used by the Cologne Division. The Bottle Division's variable manufacturing cost is $4.00, the shipping cost is $0.30, and the external sales price is $5.00. No shipping costs are incurred on sales to the Cologne Division, and the Cologne Division can purchase similar containers in the external market for $4.60. The Bottle Division has sufficient capacity to meet all external market demands in addition to meeting the demands of the Cologne Division. Using the general rule, the transfer price from the Bottle Division to the Cologne Division would be:
Business
1 answer:
vova2212 [387]3 years ago
6 0

Answer: $4

Explanation:

The Bottle division is said to be able to meet all excess demand outside as well as that of the Cologne Division.

When this is the case in a company, individual divisions are allowed to transfer to each other at a rate equal to their Variable Costs. This is the general rule.

The Variable Costs for the containers is $4 so that is the transfer price as well.

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Answer:

The inflation rate of return is 3.60%

Explanation:

As we know,

Inflation rate of return = {( 1 + nominal rate of return) ÷ ( 1+ real rate of return)} - 1

= {( 1 + 15%) ÷ (1+11%)} - 1

= (1.15) ÷ (1.11)} - 1

= 1.0360 - 1

= 0.360 or 3.60%

The inflation rate of return shows a relationship between the nominal rate of return and the real rate of return. We simply divide the nominal rate of return by real rate of return

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3 years ago
The gdp price index equals?
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1 year ago
Problem 7-28 Nonconstant Growth (LO2) Planned Obsolescence has a product that will be in vogue for 3 years, at which point the f
LuckyWell [14K]

Answer:

Po = <u>D1</u>        +     <u>D2</u>    +        <u> D3</u>

       (1 + Ke)     (1 + Ke)2   (1 + Ke)3                                                                                                                                          

Po = <u>$12</u> +   <u>$12.50</u> +      <u>$28 </u>

     (1 + 0.1)    (1 + 0.1)2   (1 + 0.1)3

Po = <u>$12</u> + <u>$12.50</u> + <u>$28</u>

        1.1       (1.1)2        (1.1)3

Po = $10.91 + $10.33 + $21.04

Po = $42.28  

                                                                                   

Explanation:                                                                      

The current stock price is a function of future dividends capitalised at the cost of capital of the company of 10% for a period of 3 years.  

6 0
3 years ago
Which of the following is not possible?a. Demand is elastic, and a decrease in price causes an increase in revenue.b. Demand is
bekas [8.4K]

Answer:

b. Demand is unit elastic, and a decrease in price causes an increase in revenue

Explanation:

According tothe revenue theory in economics

when the demand is inelastic the relationship within price and total revenue is direct. either both increases or decreases

when the demand is elastin this relationship is inverve, teh increase in price generates a decrease in total revenue

while their decrease an increase.

But, if the demand is unit elastic then, there is no variation at all

According to this theory, option B is impossible.

8 0
3 years ago
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Answer: B

Explanation:

Budgetary slack is a cushion created in a budget by management to increase the chances of actual performance beating the budget. Budgetary slack can take one of two forms: an underestimate of the amount of income or revenue that will come in over a given amount of time, or an overestimate of the expenses that are to be paid out over the same time period. Budgetary slack is generally frowned upon because the perception is that managers care more about making their numbers to keep their seats and gaming the executive compensation system rather than pushing company performance to its potential. Managers putting a budget together could low-ball revenue projections, pump up estimated expense items, or both to produce numbers that will not be hard to beat for the year. It also provides flexibility for operating under unknown circumstances, such as an extra margin for discretionary expenses in case budget assumptions on inflation are incorrect, or adverse circumstances arise.

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3 years ago
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