Answer:
B. is the marginal cost of the producing subsidiary
Explanation:
The subsidiary company will not sale at loss. Their transfer price should be at least enough to cover the additional cost generated for the units sold to parent company.
a.- the sales price do not alter the cost.
c.- the marginal cost can be determinated, as is the cost of producing an additional units forthe relevant range of capacity for the subsidiary company.
d.- if the subidiary sales at monopoly price, it will be increasing his profit by selling a higher price and lower quantity. That is not profitable for the parent company which, is what we are looking for.
Answer:
$8,500
Explanation:
The computation of the cash balance at the end of March is shown below:
Opening Cash Balance $3,000
Add: Cash Collection from Sales $53,500 (($50,000 × 65%) +($60,000 × 35%)
Total Cash Available $56,500
Less: Cash Payments
Inventory $19,000 (($20,000 × 50%) + ($18000 × 50%)
S&A Expense $4,000
Loan & Int Payment $25,000
Depreciation - (Non Cash Expense)
Closing Cash Balance $8,500
We simply added the cash receipts and deduct the cash payments to the opening cash balance so that the ending cash balance could come
Answer:
graph 7
Explanation:
As a result of the government's decree, there would be an increase in the demand for coffee. This would lead to a rightward shift of the demand curve. As a result, equilibrium price and quantity increases.
If fewer Central American are growing coffee beans, there would be a decrease in the supply of coffee. This would lead to a leftward shift of the supply curve. As a result, equilibrium price increases and quantity decreases.
Taking these two effects together, equilibrium price increases and there is an indeterminate effect on quantity
Answer: c. Local taxes
Explanation:
The city will have to take into account the relevant environmental standards when constructing the sidewalks. They will also have to factor in federally restrictive mandated covenants for legality.
Local zoning laws will also need to be taken into account so that the sidewalk is not built where it is not meant to be and building codes would be important as well. They however, do not need to be concerned about local taxes because the city will not charge itself tax for city maintenance work.