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elena-s [515]
3 years ago
6

Division A has variable manufacturing costs of $50 per unit and fixed costs of $10 per unit. Assuming that Division A is operati

ng at capacity, what is the opportunity cost of an internal transfer when the market price is $75?
Business
1 answer:
ra1l [238]3 years ago
6 0

Answer:

$25

Explanation:

The computation of the opportunity cost of an internal transfer is shown below:

= Market price - variable manufacturing costs

= $75 - $50

= $25

Simply we deduct the variable manufacturing costs from the market price so that the accurate amount can come.

All other information which is given is not relevant. Hence, ignored it

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Coache Corporation is considering a capital budgeting project that would require an investment of $120,000 in equipment with a 4
Kaylis [27]

Answer:

a. $44,000

Explanation:

The computation of the total cash flow net of income taxes in year 3 is shown below:

= Incremental sales - annual incremental cash operating expenses - one-time renovation expense - depreciation expense - income tax expense + depreciation expense

= $310,000 - $230,000 - $30,000 - $30,000 - $6,000 + $30,000

= $44,000

Since depreciation is a non-cash expense so it would be added back to the computation part

The depreciation expense would be

= (Original cost - residual value) ÷ (useful life)

= ($120,000 - $0) ÷ (4 years)

= ($120,000) ÷ (4 years)  

= $30,000

And, the income tax expense would be

= (Incremental sales - annual incremental cash operating expenses - one-time renovation expense - depreciation expense) × tax rate

= ($310,000 - $230,000 - $30,000 - $30,000) × 30%

= $20,000  × 30%

= $6,000

6 0
3 years ago
Amanda looked up at the scoreboard and exclaimed, "Wow, that is so vivid and fantastic. I don't know what that cost, but it is a
Neko [114]

Answer:

Electronic equipment

Explanation:

Throughout history, sport has evolved while society has done it. Both at a professional or elite level and at an amateur level, the sport has undergone several revolutions, some of them due to technological inventions.

There is no sport that has not undergone a technological revolution, one way or another. Some, like basketball, have been more prone in this regard, while others have been sidelined. But without a doubt, nobody escapes the tentacles of innovation.

Technology in sports has been included to apply its rules more easily, be more objective, and improve the accuracy of the sport. They are tools that facilitate the practice of sport.

3 0
3 years ago
On January 1, 2021, Ravetch Corporation’s projected benefit obligation was $51 million. During 2021, pension benefits paid by th
nevsk [136]

Answer:

$67.1 million

Explanation:

Given that,

Projected benefit obligation at the beginning of 2021 = $51 million

Service cost = $18 million

Retiree benefits  = $7 million

Projected benefit obligation at December 31, 2021:

= Beginning of 2021 + Service cost + Interest cost - Retiree benefits

= $51 million + $18 million + (10% × $51 million) - $7 million

= $51 million + $18 million + $5.1 million - $7 million

= $67.1 million

3 0
3 years ago
The Doral Company manufactures and sells pens. Currently, 5,000,000 units are sold per year at $0.50 per unit. The fixed costs a
SVEN [57.7K]

Answer:

Operating Income = $100,000

Explanation:

1 a. What is the current annual operating income?  

Revenue - 5,000,000* $0.5 = 2,500,000

Less: Variable Costs - 5,000,000*$0.3 = 1,500,000

Contribution = 1,000,000 (margin = 1m/2.5m = 40%)

Less: Fixed Costs ....$900.000

Operating Income = $100,000

b. What is the present break even point in revenues?  

BEP = FC/Contribution Margin = 900,000/0.4 = $2,250,000

2. A $0.04 per unit increase in variable costs  

Revenue - 5,000,000* $0.5 = 2,500,000

Less: Variable Costs - 5,000,000*$0.34 = 1,700,000

Contribution = 800,000

Less: Fixed Costs ....$900.000

Operating Income = ($100,000)

3. A 10% increase in fixed costs and a 10% increase in units sold  

Revenue - 5,500,000* $0.5 = 2,750,000

Less: Variable Costs - 5,500,000*$0.3 = 1,650,000

Contribution = 1,100,000

Less: Fixed Costs ....$990.000

Operating Income = $110,000

4. A 20% decrease in fixed costs, a 20% decrease in selling price, a 10% decrease in variable cost per unit and a 40% increase inunits sold.  

Revenue - 7,000,000* $0.4 = 2,800,000

Less: Variable Costs - 7,000,000*$0.27 = 1,890,000

Contribution = 910,000

Less: Fixed Costs ....$720.000

Operating Income = $190,000

5.Compute the new breakeven point in units for each of the following changes:   A 10% increase in fixed costs  

BEP = FC/Contribution Margin = 810,000/0.4 = $2,025,000

6. A 10% increase in selling price and a $20,000 increase in fixed costs

Revised Contribution Margin = 0.55 - 0.3 = 0.25; 0.25/0.55 = 0.4545

BEP = FC/Contribution Margin = 1080,000/0.4545 = $2,376,238

8 0
3 years ago
Read 2 more answers
A leasea) Must be for at least one yearb) Conveys the right of occupancy to anotherc) Must include the landlord paying the taxes
Y_Kistochka [10]

Answer:

b) Conveys the right of occupancy to another

Explanation:

A lease is an agreement made between a lessee and a lessor for using an asset. A lessee is a user who pays to the lessor who is the owner for any asset which can be a building, property or a vehicle. The lessee owns the right to use the asset by paying to the lessor for the fixed duration. Usually, the asset put into a lease are tangible but can be intangible too.

3 0
3 years ago
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