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Over [174]
3 years ago
15

Freberg Company, a division of Dudge Cars, produces automotive batteries. Freberg sells the batteries to its customers for $92 p

er unit. The variable cost per unit is $42, and fixed costs per unit are $16. Top management of Dudge Cars would like Freberg to transfer 30,000 batteries to another division within the company at a price of $54. Freberg is operating at full capacity. Compute the minimum transfer price that Freberg should accept. Minimum transfer price $
Business
1 answer:
Travka [436]3 years ago
7 0

Answer:

The minimum transfer price is $92

Explanation:

Minimum transfer price = Variable cost + Opportunity cost

= $42 + $(92-42)

= $42 + $50

= $92

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If national pride in the local capability to make a complex product is the objective of government policy, the best policy strat
Helga [31]
It is always the aim of the government that people take pride with the things that the locals in their land are able to produced. If this is the main aim of the government then, it should be a policy that one should buy the local products first. In line with this, the government may limit the amount of imported goods reaching their area as these imported good may jeopardized the aim to take pride in the local ones. 
7 0
2 years ago
A corporation has issued 30,000 shares of $50 par common stock and holds 5,000 of these shares as treasury stock. If the corpora
Andrews [41]

Answer:

The amount of $25,000 will be recorded as the Cash Dividends

Explanation:

The amount which is to be recorded as the cash dividend is computed as:

Cash Dividend = Number of Shares × Rate per share

where

Number of shares is computed as:

Number of shares = Issued Shares - Treasury Stock

= 30,000 - 5,000

= 25,000

NOTE: No dividend is paid on treasury stocks, so the the shares of the treasury stocks are subtracted.

Rate per share is $1

SO, Putting the values above:

Cash Dividend = 25,000 × $1

= $25,000

3 0
3 years ago
When excess demand exists for tickets to a major sporting event or a​ concert, profit opportunities exist for scalpers?
allochka39001 [22]
Here is the answer. When excess demand exists for tickets to a major sporting event or a​ concert, profit opportunities exist for scalpers because they do work efficiently because they allow ticket prices, especially those in high demand to reach an equilibrium by supplying those who want a ticket at market price allowing them to get one, and by allowing those with utilities below the market price to <span>sell them. With their help, no tickets would be gone to waste. Hope this answers your question.</span>
8 0
3 years ago
A company's gross profit was $118,350 and its net sales were $466,300. its gross margin ratio equals:
ladessa [460]

The gross margin ratio is a percentage resulting from dividing the amount of a company's gross profit by the amount of its net sales. In this case it would be 118,350/466,300 = 25.38%

3 0
2 years ago
Phillips Co. is growing quickly. Dividends are expected to grow at a rate of 20 percent for the next three years, with the growt
mr_godi [17]

Answer:

$69.47

Explanation:

D1 = ($1.45*1.20) = $1.7

D2 = ($1.7*1.20) = $2.04

D3 = ($2.04*1.20) = $2.45

Value after year 3 = (D3*Growth Rate) / (Required rate-Growth Rate)

Value after year 3 = ($2.45*1.08) / 0.11-0.08

Value after year 3 = $2.646 / 0.03

Value after year 3 = $88.20

Current share price = Future dividend and value*Present value of discounting factor(rate%,time)

Current share price = $1.7/1.11 + $2.04/(1.11)^2 + $2.45/(1.11)^3 + $88.20/(1.11)^3

Current share price = $1.5315315 + $1.65571 + $1.7914189 + $64.49107

Current share price = $69.4697304

Current share price = $69.47

8 0
2 years ago
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