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Burka [1]
3 years ago
14

Wetherald Products, Incorporated, has a Pump Division that manufactures and sells a number of products, including a standard pum

p that could be used by another division in the company, the Pool Products Division, in one of its products. Data concerning that pump appear below: Capacity in units 56,000 Selling price to outside customers $ 86 Variable cost per unit $ 55 Fixed cost per unit (based on capacity) $ 13 The Pool Products Division is currently purchasing 4,200 of these pumps per year from an overseas supplier at a cost of $76 per pump. Assume that the Pump Division is selling all of the pumps it can produce to outside customers. What should be the minimum acceptable transfer price for the pumps from the standpoint of the Pump Division
Business
1 answer:
algol133 years ago
7 0

Answer:

Minimum transfer price = $86

Explanation:

Pump Division  is operating at full capacity, hence it has no excess capacity

This implies that it can not produce enough to meet both the internal demand (from the Pool Division ) and external buyers.

Hence, it implies that Pump Division cannot accommodate the demands of the Pump Division  at a price lower than the  external price of $86. Any price lower than $86  would result into a loss in contribution.

To maximize and optimize the group profit, the minimum transfer price should be set as follows:

Minimum transfer price = External selling price at which Pump Division sells to outside customers

Minimum transfer price = $86

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$2,250,000

Explanation:

The computation of the estimated next year sales is shown below:

= Sales last year at full capacity + Sales last year at full capacity × next year percentage × capacity percentage

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= $2,000,000 + $250,000

= $2,250,000

We simply applied the above formula so the correct estimated sales for the next year could come

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4 years ago
A large bank is promoting its credit card to existing bank customers who have had more than one account with the bank over the p
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Answer:

Behavioral.

Explanation:

A market segment is a portion of a large market in which the individuals, groups or organizations share one or more characteristics that cause them to have relatively similar products needs.

A market segment consist of a group of customers that share a similar set of needs and wants.

Are four categories of segmentation:

-Geographic

-Demographic

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3 years ago
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3 years ago
Next year baldwin plans to include an additional performance bonus of 0. 5% in its compensation plan. This incentive will be pro
galben [10]

Baldwin will pay (D) $29.63 to its employees per hour.

<h3>What is a bonus?</h3>
  • Employees typically receive a bonus payment in addition to their base compensation as part of their wages or salary.
  • While the base compensation is often a predetermined amount per month, incentive payouts may change based on established factors such as annual turnover, the net number of additional customers recruited, or the current value of a public company's shares.
  • Thus, bonus payments can work as incentives for managers, engaging their attention and personal interest in what is perceived as beneficial to the economic performance of their companies.

Consider the following calculations to determine how much Baldwin pays its employees:

  • Total raise = 5% + 0.25% = 5.25%
  • Present wages = $28.15
  • Baldwin will pay = $28.15 × (1.0525) = $29.63

Therefore, Baldwin will pay (D) $29.63 to its employees per hour.

Know more about a compensation plan here:

brainly.com/question/25438234

#SPJ4

The complete question is given below:

Next year Baldwin plans to include an additional performance bonus of 0.25% in its compensation plan. This incentive will be provided in addition to the annual raise if productivity goals are reached. Assuming the goals are reached, how much will Baldwin pay its employees per hour?

Select: 1

(A) $28.22

(B) $31.04

(C) $28.15

(D) $29.63

8 0
2 years ago
The balance shown in the August bank statement of a company was $22,800. After examining the August bank statement and items inc
Elena-2011 [213]

Answer: $20,600

Explanation:

In calculating the amount of cash that should be reported in the balance sheet as of August 31, we add the deposits Outstanding because that is money that we are getting. We then subtract the checks Outstanding because that is money we are to pay. These are the 2 balances to be concerned with.

The cash balance will therefore be,

= Bank account balance + Deposit Outstanding - Checks Outstanding

= 22,800 + 2,000 - 4,200

= $20,600

$20,600 is the amount of cash that should be reported in the balance sheet as of August 31.

7 0
4 years ago
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