Answer: $2.60
Explanation:
Based on the information given in the question, the maximum amount that the Cologne Division would be willing to pay for each bottle transferred would be the amount that the company can purchase the containers in the external market which is given in the question as $2.60.
That's the highest amount that they can but the containers for. Therefore, the answer is $2.60
It means that there is not much of it. It's demand will skyrocket because it becomes valuable. Example: There aren't many diamonds in the world, it's a nonrenewable resource, and because it's rare, it's valuable. Having less of something makes it rare.<span />
Answer:
The correct answer is letter "A": The convenience yield is always positive or zero.
Explanation:
The convenience yield reflects the premium of possessing an asset instead of one of its derivates or contracts. This situation arises in front of inverted markets, where holding the asset itself may bring more profits than purchasing a derivate of the same asset.
<em>The convenience yield tends to be positive or zero because the prices of assets cannot fall below zero. In other words, they are not negative.</em>
Answer:
Instructions are listed below.
Explanation:
Giving the following information:
Bristol charges $56 per trip
The variable cost= $30
The monthly fixed cost= $7, 280.
To calculate the break-even point we need to use the following formula:
Break-even point= fixed costs/ contribution margin
Break-even point= 7,280 / (56 - 30)= 280 trips
Margin of safety= (current sales level - break-even point)
Margin of safety= 300 - 280= 20 trips
Answer:
true
Explanation:
The equity approach is an accounting methodology that a company uses to record profits gained in another corporation through its expenditure. With the accounting equity process, the creditor company considers on its financial statements the revenue generated by the other entity, in a sum equal to the ratio of its equity stake in the other firm.
In other words, The equity theory recognizes the concrete economic connection among two individuals. The creditor documents on the financial statements the portion of the return on that investment as profits from the company.