Answer:
The minimum transfer price is $25.
Explanation:
The number of containers to be transferred = 10000 containers.
The rate of its container = $41.00
The selling price of food to customers = $98 per unit.
The variable cost per unit for food division = $37 per unit
The fixed price per unit = $25
The transfer price should be a minimum of $25 that is equal to variable cost because as per the rule the transfer price between the organization should be equal to variable cost or marginal cost. therefore, the minimum transfer price is $25.
Answer:
d. 5704.02
Explanation:
Nper = 30*12 = 360
Rate = 10%/12 = 0.008333
PV = 650,000
Using the MS Excel function:
Monthly payment = PMT(RATE, NPER, -PV)
Monthly payment = PMT(10%/12, 360, -650000)
Monthly payment = $5,704.02
Answer:
$9.6 million
Explanation:
The amount Laramie would record in its books of account in respect of the land acquisition cost is the sum of the cash paid now and the notes payable .
That effectively gives acquisition cost of $9.6 million ($2.9 million+$6.7 million).
The interest payable on the notes payable of $6.7 million would be treated as expense in the income statement of years 2021 and 2022 respectively without being added to the acquisition cost since it is a revenue expense and should not be capitalized.
I would pick D. Because the customer would be giving feedback from their own personal experience from the product they bought.
