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PtichkaEL [24]
3 years ago
15

Delta Company sells bells to customers for $1 each. The variable cost to manufacture the bells is 10 cents. If the rattle depart

ment, a division of the Delta Company, wants to use the bells in its new line of rattles, which of the following transfer prices can be used if there is excess capacity? Select the correct answer(s). Multiple boxes may be checked if needed. A. $0.00 B. $0.05 C. $0.11 D. $0.95 E. $1.50 F. $2.00
Business
1 answer:
ale4655 [162]3 years ago
4 0

Answer:

Option C. $0.11

Option D. $0.95

Explanation:

As we know that the Transfer Price is set at either selling price for an outside market or variable cost plus opportunity cost if the product sold is to internal market present within the organization (Inter group or inter division sales).

However, the division can still charge upper limit price to the division which is $1 market price of the product.

Upper limit = $1

As it is given that the selling of the additional units will be among divisions which means its inter division market. Hence the lower limit will be used here.

Lower Limit = Variable cost + opportunity cost

Here

Variable cost is $10 cents

And

Opportunity cost will be zero here as the division will be using its excess capacity to sell to the other division, so there is no opportunity cost.

So, by putting values, we have:

Lower Limit = $0.1 - $0 = $0.1

Upper limit = $1

Thus the transfer price set for each bell can be between $1 and $0.1. So the $0.11 and $0.95 falls between these range and both are correct options here.

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The correct option is C). Void contract. It is void type of contract if you sign a contract to purchase a machine that will allow you to travel back in time and meet Abraham Lincoln.

<h3>What is void contract?</h3>

Void contract is a formal contract between two parties, which is not authorized by the law and enforceable from the moment it was created.

A void contract is little differ from the valid contract. Void contract is not an actual contract, despite it is unenforceable.

Both void and voidable contract are null, but a void contract cannot be officially valid.

Learn more about the void contract here:-

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6 0
1 year ago
When Beck joined his uncle's oil exploration company in east Texas, he was given several hundred shares of stock in the firm, an
sergij07 [2.7K]

Answer: Master limited partnership

Explanation:

A master limited partnership also referred to as a MLP, is known as a limited partnership which is publicly traded on an exchange. A Master Limited Partnership tends to combine the tax benefits or advantages from a limited partnership with its liquidity that are the publicly traded securities such as stocks and bonds offer.  A MLP tends to pays taxes like every other partnerships, thus by passing profits through to individual, and also accounting for these profits on owner's tax return.

7 0
3 years ago
When input costs increase
sveticcg [70]
There is a movement up along an existing supply curve
4 0
3 years ago
Read 2 more answers
Your company currently has $ 1 comma 000 ​par, 6 % coupon bonds with 10 years to maturity and a price of $ 1 comma 078. If you w
Stella [2.4K]

Answer:

The next  coupon rate that is needed to​ set is 5.00%

Explanation:

Solution

Recall that:

Your company presently has =$1,000 par

Coupon bonds = 6%

Maturity = 10 years

The next step is to find the coupon rate that is needed or required to set.

Now,

The number of semi annuals to maturity, NPER =  (10 YEARS * 2)= 20

Semiannual coupon payments, PMT = ($1000 * 6%/2) = $30

The current selling price per bond  (FV) = $1078

The maturity value at the end is = $1000

The semiannual compound type, = 0 (It is 0 if compounded at the end of each semiannual and is 1 if compounded at the start of each semiannual)

Semi annual interest rate is = 2.5%

Thus,

The number of semi annuals in a year is = 2

The annual coupon rate of bonds (new) = 2/50 % * 2

= 5.00%

It is important to note that the semi annual coupon rate is computed suing the excel function rate (nper, pmt, pv,  fv, type),

Whereby

PV =1078

NPR = 20

PMT =30

FV = 1000

TYPE = 0.

3 0
3 years ago
Identify the coefficient and exponent of these very large and very small numbers represented in scientific notation. Identify ho
viktelen [127]

Answer:

The answer is below

Explanation:

Scientific notation is a way in which real numbers both big and small are represented in decimal form. It is represented by dividing the number into two parts in the form of a × 10^b, where 1 ≤ |a| ≤ 10 and  b is to the power of ten which makes it equal to the original number.

1)\ 5890000=a*10^b=5.89*10^6\\\\hence,a=5.89,b=6\\\\2)\ 0.0000521=c*10^d=5.21*10^{-5}\\\\hence,c=5.21,d=-5

3 0
3 years ago
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