Answer:
If Division X refuses to accept the $19 price internally and Division Y continues to buy from the outside supplier, the company as a whole will be:_________.
c. worse off by $28,600 each period.
Explanation:
The $28,600 loss the company incurs is from the lost contribution that Division Y's purchase of Division X's parts could have brought to the company if it buys parts inhouse. This is calculated as follows:
Division X's variable cost per unit = $17
Division X's selling price to outside customers = $23
Division Y's offered buying price = $19
The contribution = $2 ($19 - $17)
<span>This is because the tax on a carton of cigarette is about $10plus. It used to be $3plus before the Obama administration and when the cost of tax is added to the sales price, it makes it more expensive for the average consumer, however, black market sellers usually avoid paying taxes thats why it is black market.</span>
Answer:
An increase in sale for 90 units, will increase the net income for 1$,170
Explanation:
<em>We are not given with any information of additional cost or special price for this units, so we use the current values.</em>
So we simply multiply the contribution per unit by the increase in sale.
Contribution Margin x Δ sales = Δ income
13 x 90 = 1,170
Each unit contributes with 13 additional income, there are 90 additional units
Total income added 1,170
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Answer:
a. Payment of interest on notes payable - Operating Activity
b. Exchange of land for patent - Non Cash investing activity
c. Sale of building at book value - Investing Activity
d. Payment of dividends - Financing Activity
e. Depreciation - Operating Activity
f. Receipt of interest on notes receivable - Operating Activity
g. Issuance of Capital Stock - Financing Activity
h. Amortization of patent - Operating Activity
i. Issuance of bonds for land - Non Cash investing activity
j. Purchase of land - Investing Activity
