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
liberstina [14]
3 years ago
10

Division A makes a part with the following characteristics: Production capacity in units 34,000 units Selling price to outside c

ustomers $ 21 Variable cost per unit $ 13 Total fixed costs $ 105,800 Division B, another division of the same company, would like to purchase 10,000 units of the part each period from Division A. Division B is now purchasing these parts from an outside supplier at a price of $18 each. Suppose that Division A is operating at capacity and can sell all of its output to outside customers at its usual selling price. If Division A agrees to sell the parts to Division B at $18 per unit, the company as a whole will be: rev: 10_24_2020_QC_CS-237557 Multiple Choice worse off by $30,000 each period. better off by $30,000 each period. worse off by $60,000 each period. There will be no change in the status of the company as a whole.
Business
1 answer:
azamat3 years ago
7 0

Answer:

Division A

If Division A agrees to sell the parts to Division B at $18 per unit, the company as a whole will be:

worse off by $30,000 each period.

Explanation:

a) Data and Calculations:

Production capacity of Division A = 34,000

Selling price per unit to outside customers = $21

Variable cost per unit = $13

Total fixed costs = $105,800

Order from Division B = 10,000

Price that Division B purchases from outside supplier = $18

Selling to Division B instead of selling to outside customers will result in a loss of $3 ($21 - $18) per unit

The total loss = $30,000 ($3 * 10,000)

You might be interested in
Cheryl was balancing the Trial Balance of the company. She found that the debit balance totaled $73,000 and the credit balance w
klio [65]
I think it is both sides

4 0
3 years ago
Read 2 more answers
An economics student makes the following​ statement: ​"It's easy to understand why the aggregate demand curve is downward​ slopi
Luda [366]

Answer:

The aggregate demand curve is downward sloping because when the general level of price rise; the real wealth of consumers will decline (with a certain amount of money you end up buying less goods), the interest rates will increase (as inflation increases, interest rates also increase), and the price of exported goods increases (as the general price of goods increase, the production of goods will also become more expensive).

3 0
3 years ago
Stevie recently received 1,035 shares of restricted stock from her employer, Nicks Corporation, when the share price was $9 per
Anton [14]

Answer:

9,315

Explanation:

The 83(b) election of the IRC which allows the employe of restricted stock to pay taxes on the fair market value at the time were granted.

It applies when the stocks are subject to vesting

The 83(b) election becomes useful when the employee has confidence that market value will increase and thus, saving taxes in the future.

If the market price decrease over the years or the company files for bankrupcy, the taxpersons will have pay income taxes for a worthless amount.

Also, if he leaves the company before esting the shares, it would had pay taxes for shares it won't receive.

So, resuming: under election 83(b) we use granted time value

1,035 x 9 = 9,315

4 0
3 years ago
Johnson’s Fruit Farm is one of several stores in the county where customers can purchase locally grown fruits and vegetables. Ho
Vlada [557]

Answer:

The answer is: True

Explanation:

Strategic positioning refers to  carrying out activities that will differentiate your business from its competition.

By offering weekly workshops, Johnson's Fruit Farm is developing a core competency which will help them gain competitive advantage over other stores in their county.

7 0
3 years ago
Explain why the sale of used goods is not included in GDP.
Natali [406]

Used goods are not included in the current year GDP, as they were already included in the year that they were produced. GDP stands for Gross Domestic Product, and includes the values of goods and services created that year in that specific country alone.

8 0
3 years ago
Other questions:
  • Dairy Days Ice Cream sells ice cream cones for​ $5 per customer. Variable costs are​ $2 per cone. Fixed costs are​ $2100 per mon
    8·1 answer
  • Last year your performance was not very good and your performance rating was below average, but this year you have done very wel
    9·1 answer
  • It costs ​$34,000 to retrofit the gasoline pumps at a certain filling station so the pumps can dispense E85 fuel​ (85% ethanol a
    9·1 answer
  • Suppose you know a company's stock currently sells for $90 per share and the required return on the stock is 15 percent. You als
    8·1 answer
  • Suppose that a young couple has just had their first baby and they wish to ensure that enough money will be available to pay for
    6·1 answer
  • Why teams need negotiation skills?<br>​
    8·1 answer
  • Give an example of a requirements contract associ-<br> ated with school.
    15·1 answer
  • Why do many people have a fraught relationship with money?
    15·1 answer
  • Economists believe that people's wants are:
    12·1 answer
  • Open this link to read more about how credit card interest works. Use this information to calculate the cost of your computer wh
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!