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quester [9]
2 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]2 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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Denver Systems has total assets of $1,000,000; common equity of $400,000; a gross profit of $800,000; total operating expenses o
krok68 [10]

Answer:

See

Explanation:

4 0
2 years ago
Ben and Mildred's Stables used two different independent variables (trainer hours and number of? horses) in two different equati
liubo4ka [24]

Answer:

the estimated total cost for the coming year is $12,227.60

Explanation:

The computation of the estimated total cost is shown below:

y

= Constant coefficient + independent variable coefficient × number of horses

= $5,240.20 + $22.54 × 310 horses

= $5,240.20 + $6,987.40

= $12,227.60

This is the answer but not the same is to be given in the options

hence, the estimated total cost for the coming year is $12,227.60

7 0
3 years ago
Which of the following is not a function of prices in a market system? Group of answer choices Prices send signals to buyers and
Sedaia [141]

Answer:

Prices ensure an equal distribution of goods and services among consumers.

Explanation:

The price mechanism helps in the efficient allocation of resources. There are a number of functions performed by the price mechanism. Prices send signals regarding resources. An increase and decrease in prices reflect surplus and deficit.  

Price balances the demand and supply of a product. Price is inversely related to demand and positively related to the supply of a product. It is determined by the interaction of demand and supply and helps in balancing supply and demand.  

For instance, an increase in demand would increase the price, this higher price will motivate the suppliers to increase quantity supplied thus balancing demand and supply.  

Price helps in coordinating economic activities and helps buyers and sellers in decision making. However, they do not help in equal distribution of goods and services among consumers.

6 0
2 years ago
which of the following is an example of a project that belongs to the functional area of accounting and finance? a. market resea
Semenov [28]

Planning a firm's initial public offering is an example of a project that belongs to the functional area of accounting and finance.

A primary marketplace is a supply of recent securities. Frequently on a change, it is where organizations, governments, and other agencies go to achieve financing via debt-primarily based or equity-primarily based securities.

Number one markets are facilitated by way of underwriting corporations such as investment banks that set a starting charge range for a given protection and oversee its sale to buyers.

As soon as the initial sale is entire, similarly, trading is performed at the secondary marketplace, wherein the bulk of trade trading occurs every day.

Learn more about finance here: brainly.com/question/26499492

#SPJ4

3 0
1 year ago
Simpkin Corporation owns manufacturing facilities in States A, B, and C. B uses a three- factor apportionment formula under whic
ivanzaharov [21]

Answer:

Simpkin Corporation

Simpkin's apportionable income assigned to B is:________.

b. $533,333

Explanation:

a) Data and Calculations:

Apportionable operating income = $1,000,000

                   State A            State B           State C         Totals

Sales      $400,000        $800,000      $300,000   $1,500,000

Payroll       100,000           150,000          50,000        300,000

Property   200,000          200,000        200,000       600,000

State B's portion of the operating income = $1,000,000 * $800,000/$1,500

= $533,333

5 0
3 years ago
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