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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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Why is acknowledgement so important to active listening?
Brrunno [24]
So the person(s) speaking will know that you understand what they are speaking about.
8 0
3 years ago
Read 2 more answers
Maxim Corp. has provided the following information about one of its products: Date Transaction Number of Units Cost per Unit 1/1
Setler [38]

Answer:

Cost of goods sold as per average cost method = $92,458.5

Explanation:

As for the information provided as follows:

Opening Inventory             265 units     @         $153 each      = $40,545

Purchase                             465 units     @         $173 each      = $80,445

Purchase                             165  units     @         $213 each      = $35,145

Total data                            895 units                                        = $156,135

Average cost per unit = $156,135/895 = $174.45

In average cost method simple average is performed, whereas in weighted average weights are assigned.

Sale is of 530 units

Cost of goods sold as per average cost method = $174.45 \times 530 = $92,458.5  

7 0
2 years ago
Shay is preparing to go into her meeting with her supervisor, Jill, to discuss her annual evaluation. She knows that there have
ehidna [41]

Shay was trying to: resist being defensive.

<h3><u>Explanation:</u></h3>

The term resist refers to the act of withstanding. It is an act through which a person fights firmly and strongly. The act through which an individual induces threats through the behaviour refers to be defensive. It makes them to be unique in the task they do. A person will be resist and defensive when he or she knows that their work is good enough and there will be no pint to prove them wrong or blamed.

In the given scenario, Shay knows that she performed better and he prepares herself not to be angry in the meeting held by her supervisor. She prepares herself with the entire question that will be asked her by the supervisor and how she must react to those questions. Thus, Shay was trying to: resist being defensive.

5 0
3 years ago
A firm has an equity multiplier of 1.57, an unlevered cost of equity of 14 percent, a levered cost of equity of 15.6 percent, an
Elanso [62]

Answer:

10.45%

Explanation:

Calculation to determine the cost of debt

B/S = 1.57 − 1

B/S = .57

.156 = .14 + .57(1 −.21)(.14 − RB)

.156 = .14 + .57(.79)(.14 − RB)

RB = .1045*100

RB= 10.45%

Therefore the cost of debt is 10.45%

6 0
3 years ago
In 2005, Clear Channel (an owner of multiple popular radio stations) spun off concert promoter Live Nation into an independent c
lana [24]

The statement the price of radio programming should fall is false.

<h3>What is Complements-in-consumption </h3>

Complements in consumption can be defined as the way in which two or more product complement each other when use of consume together or when use jointly.

Hence, Based on the scenario the statement is false because assuming the both music radio ,and concert are complements in consumption the price of radio  programming will not fall.

Learn more about Complements in consumption here:brainly.com/question/12194202

#SPJ1

3 0
1 year ago
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