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Marrrta [24]
3 years ago
9

A division can sell externally for $40 per unit. Its variable manufacturing costs are $15 per unit, and its variable marketing c

osts are $6 per unit. The variable marketing costs can be avoided if the units are transferred internally. What is the opportunity cost of transferring internally, assuming the division is operating at capacity
Business
1 answer:
Anni [7]3 years ago
6 0

Answer:

$19

Explanation:

The opportunity cost of transferring internally is the lost contribution of selling the units externally.

<em>Contribution = Sales - Variable Costs</em>

where,

Sales = $40

Variable Costs = $15 + $6 = $21

therefore,

Lost Contribution =  $40 - $21 = $19

Conclusion

the opportunity cost of transferring internally is $19.

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nekit [7.7K]

Answer:

TRUE

Explanation:

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r = required return

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3 0
3 years ago
"In the context of goal-setting theory, _____ is information about the quality or quantity of past performance and indicates whe
Bad White [126]

Answer: performance feedback

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6 0
3 years ago
Your company has a cost differentiation strategy regarding its products. there are several new entrants into your saturated mark
gtnhenbr [62]

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7 0
3 years ago
The cost of goods for Mandy Manufacturing Company flow through an assembly and a finishing department before being transferred t
laila [671]

Answer:

Option (D) is correct.

Explanation:

Given that,

Beginning work in process = $4,000

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= $134,000

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5 0
4 years ago
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dlinn [17]

Answer:

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8 0
3 years ago
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