Answer:
Pembroke= $105,000
Multinomah= $120,000
Explanation:
Giving the following information:
The materials used by the Multinomah Division of Isbister Company are currently purchased from outside suppliers at $90 per unit. These same materials are produced by the Pembroke Division.
The Pembroke Division can produce the materials needed by the Multinomah Division at a variable cost of $75 per unit. The division is currently producing 120,000 units and has capacity of 150,000 units. The two divisions have recently negotiated a transfer price of $82 per unit for 15,000 units.
Pembroke= 15,000*(82 - 75)= $105,000
Multinomah= 15,000*(90 - 82)= $120,000
Answer:
This is a form of artificial monopoly.
Explanation:
In artificial monopoly a large firm exists with smaller firms in the same market. The large firm does not have a comparative advantage in production efficiency bit still drives the competition out of business.
Large firms use restrictive measures that prevents new form from entering the market. The other type of monopoly is the natural monopoly.
Having exclusive rights to open a MacDonald's in the Carribean where you can construct as many locations as you want is called artificial monopoly. The firm has successfully barred other firms from opening a MacDonald's in the Carribean.
Answer:
The future value of an annuity (FVA) is $828.06
Explanation:
The future value of an annuity (FVA) is the value of payments at a specific date in the future based on the payments being recurring and assuming a discount rate. The future value of an annuity (FVA) is based on regular cash flow. The higher the discount rate, the greater the annuity's future value.
Where:
FVA is The future value of an annuity (FVA)
P is payment per period
n is the number of period
r is the discount rate
Given that:
P = $195
r = 4% = 0.04
n = 4 years
substituting values
The future value of an annuity (FVA) is $828.06
Answer:
useful life= 12 years
Explanation:
Giving the following information:
Purchase price= $140,000
Salvage value= $20,000
Annual depreciation= $10,000
<u>To calculate the useful life, we need to use the straight-line method formula:</u>
Annual depreciation= (original cost - salvage value)/estimated life (years)
10,000= (140,00 - 20,000) / useful life
10,000useful life = 120,000
useful life= 120,000 / 10,000
useful life= 12 years
Answer:
B) Decreased $138 million
Explanation:
To determine the effects of long term debt accounts on HP's total cash flow form financing we can use the following formula:
HP's cash flow from financing = new shares issued - shares repurchased - dividend payments + cash flows related to long term debt account + income from other financing activities
-$6,077 = $0 -$5,241 -$894 + X + $196
-$6,077 = -$5,939 + X
-$138 = X
HP's long term debt accounts decreased by $138
