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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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Duff Inc. paid a 2.34 dollar dividend today. If the dividend is expected to grow at a constant 1 percent rate and the required r
Akimi4 [234]

Answer:

$24.60

Explanation:

The computation of the price for 4 years from now is shown below:

Price = Dividend ÷(Required rate of return - growth rate)

where,

Dividend is

= Dividend × (1 + growth rate)^number of years

= $2.34 × (1 + 0.01)^5

= $2.46

All the other items would remain the same

So, the price is

= $2.46 ÷ (11% - 1%)

= $24.60

8 0
3 years ago
Crane Company purchased $1080000 of 8%, 5-year bonds from Swifty, Inc. on January 1, 2021, with interest payable on July 1 and J
nasty-shy [4]

Answer: $27,864

Explanation:

The amount that should be recorded as other comprehensive income is the fair value less the sales price and the amortized premiums to reflect the true value of the investment,

= 1,164,000 - 1,129,896 - 3,048 - 3,192

= $27,864

$27,864 is the amount Crane Company should report as other comprehensive income and as a separate component of stockholders’ equity.

6 0
3 years ago
The first step that any organization should take to manage the risk of employee communication is to develop and publicize​ a(n)
Y_Kistochka [10]
The first step ....................................... is to develop and publicize A SOCIAL MEDIA policy.
A social media policy refers to a corporate code of conduct which provides guidelines for the workers of a company who post contents on the internet either in their official or private capacity. It is also called social networking policy.
8 0
3 years ago
Jane decided to incorporate her business under the name of Star, Inc. Before Star was incorporated, Jane signed a contract with
BARSIC [14]

Answer:

D. Star will be liable on the contract only if it adopts the contract.

Explanation:

7 0
3 years ago
Which of the following would be considered retail businesses? (Select all that apply.)
Lesechka [4]
These:

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I hope it helped you!
4 0
4 years ago
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