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quester [9]
3 years ago
8

WAX-D Inc. has a division that manufactures a component that sells for $150 and has a variable cost of $45. Another division of

the company wants to purchase the component. Fixed cost per unit of component is $25. What is the minimum transfer price if the division is operating below its capacity
Business
1 answer:
inn [45]3 years ago
8 0

Answer: $70

Explanation:

If the division producing the component is operating below its capacity then it means that supplying the division that needs the component will not lead to opportunity costs in terms of foregone orders from outside the company for the component.

In such a case, the transfer price from one department to another should be the cost of producing the good which in this case is:

= Variable cost per unit + Fixed cost per unit

= 45 + 25

= $70

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snow_tiger [21]

Answer: Please refer to Explanation.

Explanation:

Two Companies. We shall call them A and B.

If A and B decide not to advertise, they both get $5,000,000.

If A advertises and B does not then A captures $3 million from B at a cost of $2 million meaning their payoff would be,

= 5 million - 2 million + 3 million

= $6 million.

A will have $6 million and B will have $2 million as $3 million was captured from them. This scenario holds true if B is the one that advertises and A does not.

If both of them Advertise, they both reduce their gains by $2 million while capturing $3 million from each other so they'll essentially both have just $3 million if they both decide to advertise.

With the above scenarios, it is better for both companies to ADVERTISE if there is NO COLLUSION. This is because it ensures that they do not get the lowest payoff of $2 million if the other company decides to advertise and they do not.

However, if they DO COLLUDE. They must both decide that NONE of them SHOULD ADVERTISE and this would leave them with their original $5 million each which is a higher payoff than the $3 million they will both receive if they were both advertising.

3 0
3 years ago
What term is used to mean employee expertise and politeness and their ability to convey trust?
melomori [17]

Answer:

The term is Assurance

Explanation:

Assurance is the term that is used to mean employee expertise and politeness and their ability to convey trust. It refers to the employee's knowledge and courtesy and thereby shows his ability to convey trust.

Employees that possess the virtue of assurance in the workplace give their employers the opportunity to trust them. Such employees perform well at work.

4 0
3 years ago
Roberta, a store manager, uses her coercive power effectively to motivate employees. because of her coercive power, roberta woul
sp2606 [1]
Given that <span>Roberta, a store manager, uses her coercive power effectively to motivate employees. because of her coercive power, Roberta would be able to fire a subordinate.

</span><span>Coercive power is the ability to influence someone's decision making by taking something away as punishment or threatening punishment if the person does not follow instructions. It can be a severe way to get staff members to follow along with a company plan, but it can be necessary in some cases.</span>
5 0
3 years ago
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Tamiku [17]

Answer:

PREPARING FOR THE TEST. The key to confidence in anything is preparation, and tests are no different. ...

KNOW HOW YOU LEARN. ...

MAKE A PLAN. ...

FIND A BUDDY. ...

REVIEW MATERIAL. ...

REST & EAT. ...

HANDLING ANXIETY. ...

TAKING THE TEST.

Explanation:

7 0
2 years ago
Firm AB and Firm YZ are identical except for their debt-to-total-assets ratios (D/TAs) and interest rates on debt. Each has $200
Vilka [71]

Answer:

the correct answer is

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3 0
3 years ago
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