1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Norma-Jean [14]
3 years ago
11

Peppertree Company has two divisions, East and West. Division East manufactures a component that Division West uses. The variabl

e cost to produce this component is $1.48 per unit; full cost is $2.01. The component sells on the open market for $4.94. Assuming Division East has excess capacity, what is the lowest price Division East will accept for the component?
Business
1 answer:
notka56 [123]3 years ago
8 0

Answer:

The lowest price that Division East will accept for the component is:

$1.48 per unit.

Explanation:

a) Data:

Variable product cost = $1.48

Full cost = $2.01 (Variable + Fixed costs)

Market price = $4.94

b) The variable product cost of $1.48 is the direct cost for producing the component, which includes the direct materials, direct labor, and direct overhead.  The full cost of $2.01 includes other fixed costs (indirect materials, indirect labor, and indirect overhead), which cannot be directly traced to the component.  The market price is the selling price, which includes the full cost and the profit margin (markup) which is added as compensation for the manufacturing effort.

You might be interested in
A government deficit has increased from 30 to 50. The country's trade deficit is 100 and private savings equal 65 and investment
viva [34]

Answer:

If Ricardian neutrality holds true, after this change in the government's budget, private savings will equal 40.

Explanation:

S - I = X - M, where

S = Sp + Sg, where

Sp: private saving

Sg: Public saving = T - G

Sp + T - G - I = X - M

or,

Sp - I = (G - T) - (M - X) = Budget deficit - Trade deficit

Initially,

65 - 30 = 90 - 100 = - 10

When budget deficit falls to 50,

Sp - 90 = 50 - 100

Sp = - 50 + 90 = 40

Therefore, If Ricardian neutrality holds true, after this change in the government's budget, private savings will equal 40.

7 0
3 years ago
Whenever Madelyn thinks about being a veterinarian, she experiences a positive, enthusiastic feeling. Because her feeling isn’t
dmitriy555 [2]

Answer:

The correct option is <u>C. intuition</u>

Explanation:

Intuition can be described as a quality in which a person thinks of something to be right due to his/her instinctive feeling. There is no logical reason for that thing to be right but still, a person understands or believes it to be true. For example, in the above question, Madelyn does not have any conscious reasoning for her being a veterinarian yet it just feels right to her. Hence, this is her intuition.

3 0
3 years ago
Read 2 more answers
After discovering that their company's best software developers are highly analytical, personnel psychologists focused their emp
zmey [24]

This is an example of a strength based selection system. It offers a different perspective on the labor pool.

6 0
3 years ago
10. Stone Industries has three product lines: X, Y and Z. The following information is available: Product X Product Y Product Z
Trava [24]
The answer is 44,000
7 0
3 years ago
Unless an organization has contracted for a ____ or equivalent, office equipment such as desktop computers are not provided at b
Andrews [41]
The term that best fits the blank above is HOT SITE. A hot site is very useful once a business experiences disaster in the recovery service. This allows the business to still resume in utilizing computer operations when a disaster happens. Therefore, it would be a great advantage to have a hot site or any equivalent to this.
6 0
3 years ago
Other questions:
  • Is a GED the same as a high school diploma? Explain.
    14·2 answers
  • Nubela Manufacturing is considering two alternative investment proposals with the following​ data: Proposal X Proposal Y Investm
    13·1 answer
  • Assume that Hotel Excellent uses activity-based costing to allocate hotel overhead to guests. In Hotel Excellent, if the budgete
    13·1 answer
  • Do these ratio values and ratios look​ strong, weak or in​ between?
    7·1 answer
  • In an auction, potential buyers compete for a good by submitting bids. Adam Galinsky, a social psychologist at Northwestern Univ
    5·1 answer
  • Any point inside a production possibilities curve indicates: Select one: a. unemployment and/or inefficiency. b. that the law of
    5·1 answer
  • 1. Which of the following is an example of the resource-based view of the firm? a. Philip Morris diversified by purchasing Kraft
    14·1 answer
  • Inacio Corporation uses the weighted-average method in its process costing system. Data concerning the first processing departme
    7·1 answer
  • Time lines can be constructed for annuities where the payments occur at either the beginning or the end of the periods.
    13·1 answer
  • The responsibilities of the board of directors includes: Group of answer choices Caring for shareholder interests A
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!