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Nadya [2.5K]
3 years ago
13

The Heating Division of Kobe International produces a heating element that it sells to its customers for $40 per unit. Its varia

ble cost per unit is $20, and its fixed cost per unit is $8. Top management of Kobe International would like the Heating Division to transfer 14,500 heating units to another division within the company at a price of $30. The Heating Division is operating at full capacity. Assume that the units being requested are special high-performance units and that the division's variable cost would be $28 per unit (rather than $20). What is the minimum transfer price that the Heating Division should accept
Business
1 answer:
san4es73 [151]3 years ago
7 0

Answer:

$48

Explanation:

Calculation the minimum transfer price that the Heating Division should accept

Using this formula

Minimum transfer price=[New UVC + (Lost USP - Regular UVC)]

Let plug in the formula

Minimum transfer price=$28+ ($40- $20)

Minimum transfer price=$28+20

Minimum transfer price= $48

Therefore the minimum transfer price that the Heating Division should accept is $48

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Answer:

C. Depreciation is a current expense of a cash outflow in the current period.

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Explanation:

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3 years ago
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nikitadnepr [17]

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7 0
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Answer:

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The right answer for the question that is being asked and shown above is that: "a cooperative a nonprofit organization." a semi-independent business that pays fees to a parent company in return for the exclusive right to sell a certain product or service in a given area called <span>a cooperative a nonprofit organization</span>
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3 years ago
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