1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Zinaida [17]
3 years ago
5

The clock division of Control Central Corporation manufactures clocks and then sells them to customers for $10 per unit. Its var

iable cost is $4 per unit, and its fixed cost per unit is $2.50. Management would like the clock division to transfer 8,000 of these clocks to another division within the company at a price of $5. The clock division could avoid $0.50 per clock of variable packaging costs by selling internally. (a) Determine the minimum transfer price, assuming the clock division is not operating at full capacity.
Business
1 answer:
Nastasia [14]3 years ago
8 0

Answer:

Minimum Transfer Price is $3.50

Explanation:

The Minimum transfer price is calculated by adding the variable cost per unit with the opportunity cost. In this case where the clock division is not operating at full capacity then the opportunity cost would be considered as $0.

Moreover, the division would be able to avoid a $0.5 cost per clock. Therefore, the variable cost will be $3.50 ($4 - $0.5) after eliminating the $0.5.

Finally, the minimum transfer would as follows:

Minimum Transfer Price = Variable cost + Opportunity Cost

Minimum Transfer Price = $3.50 + $0

Minimum Transfer Price = $3.50

You might be interested in
Julie has a solid work history and wants to apply for a job within her career field. What is the best type of resume for her to
Evgen [1.6K]
It would be,
<span>chronological</span>
7 0
3 years ago
Read 2 more answers
What should you not do in a persuasive claim or complaint message? Check all that apply. Use an irrational, emotional tone Striv
xz_007 [3.2K]

Answer: A. Use an irrational emotional tone.

D. Give a blow - by - blow chronology of details.

Explanation:

Persuasive claims or complaint messages are usually presented by customers when they encounter challenges like damaged goods, wrong deliveries or any other mistakes that could be a fault of the organization in question.

When such claims or complaints are presented, they are best started with a sincere praise of the organization, presented in a calm tone. This is followed by a logical explanation of the problem encountered and measures that were taken to address it.

It is then concluded with proposals of how the customer wants the issue to be resolved. It could be in the form of a refund or a fitting replacement for the damaged product.

3 0
3 years ago
Read 2 more answers
A real estate company provides housing services to retired individuals. It basically helps individuals above the age of sixty to
Harrizon [31]

Answer:

The correct answer is the option E: It can charge very high prices.

Explanation:

To begin with, the business presented in the case as a real estate company that provides housing services to retired individuals who typically are above the age of sixty can charge high prices to their customer due to the fact that basically they are looking for the most important service that there is in the market, a house. Moreover, the fact that the company only sales to retired people and therefore it specializes in a niche market indicates that the company is good at what they do an that is why those individuals choose it. Furthermore, the fact that these elderly people go to the organization expecting to find a house with peaceful surroundings generates the fact that they are willing to pay as much as they can to have the best for them  at the very last of their time.

8 0
3 years ago
Coffman Company sold bonds with a face value of $1,080,000 for $1,020,000. The bonds have a coupon rate of 9 percent, mature in
Neko [114]

Answer:

Coffman Company

Journal Entries:

January 1 - Sale of Bonds

Debit Cash Account with $1,020,000

Debit Bonds Discount with $60,000

Credit Bonds Payable with $1,080,000

To record the sale of 9% bonds at a discount.

June 30:

Debit Interest on Bonds with $48,600

Credit Cash Account with $48,600

To record payment of interest on June 30.

Explanation:

1. Bonds as a financing source can be issued at par value, premium, or discount.  It is issued at a discount when the interest rate is less than the market rate.  The purpose of issuing them at a discount is to attract investors to purchase the bonds, which will be repaid at the par value.

2. Interest for the half-year was calculated as follows: $1,080,000 x 9%/2 since the interest is payable semiannually.  This implies that the effective semiannual interest rate is 4.5%.

3 0
3 years ago
in a business auto policy�s physical damage coverage, which 2 coverages will not be written together for the same vehicle:
choli [55]

in a business auto policy Comprehensive and Specified Cause of Loss physical damage coverage, which 2 coverages will not be written together for the same vehicle.

An organization's usage of cars, trucks, vans, and other vehicles while conducting business is covered by a business automotive insurance (BAP). Vehicles hired by the firm, owned by the employee, or leased by the company and used for business reasons may all be covered.

A legal document used in commercial auto insurance contracts is a business auto coverage form. It details the automobiles and dangers protected under the contract. Broadening endorsements are available for purchase by policyholders who need higher levels of coverage in order to further cut their risk.

Learn more about business auto policy here

brainly.com/question/27926518

#SPJ4

3 0
1 year ago
Other questions:
  • Assume that Plavor Brands, Inc. has 10,000,000 common shares outstanding that have a par value of $2 per share. The stock is cur
    9·1 answer
  • How can people make sure they are using credit cards responsibly
    5·1 answer
  • In the united states about ________ of all jobs are in consumer services.
    10·1 answer
  • Sheffield Corp. estimates its sales at 150000 units in the first quarter and that sales will increase by 15000 units each quarte
    12·1 answer
  • Nielsen purchases scanner data from retail transactions to compile, analyze, and resell to consumer packaged-goods firms so they
    9·1 answer
  • On the end-of-period spreadsheet, Supplies has a balance of $2,000 in the Unadjusted Trial Balance Debit column and an adjustmen
    5·1 answer
  • Ray's Sounds has accumulated the following cost and market data on March 31: Cost Data Market Data iPods $24,000 $20,400 Cell ph
    14·1 answer
  • An acre lot was purchased for $100,000. A $500,000 office building was erected. The building is placed in service in May. Find t
    15·1 answer
  • Seating Galore sells high-end desk chairs. The variable expense per chair is $85.05 and the chairs sell for $189.00 each. The va
    9·1 answer
  • On April 1, Sheffield Corp. purchased for $1647000 a tract of land on which a warehouse and office building was located. The fol
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!