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SVETLANKA909090 [29]
3 years ago
15

Aulman Inc. has a number of divisions including a Furniture Division and a Motel Division. The Motel Division owns and operates

a line of budget motels located along major highways. Each year, the Motel Division purchases furniture for the motel rooms. Currently, it purchases a basic dresser from an outside supplier for $40. The manager of the Furniture Division has approached the manager of the Motel Division about selling dressers to the Motel Division. The full product cost of a dresser is $29. While the Furniture Division has been operating at capacity (50,000 dressers per year) and selling them for $40 each, it expects to produce and sell only 40,000 dressers for $40 each next year. The Furniture Division incurs variable costs of $13 per dresser. The company policy is that all transfer prices are negotiated by the divisions involved.
Required:
a. What is the maximum transfer price?
b. Which division sets it?
c. What is the minimum transfer price?
d. Which division sets it?
Business
1 answer:
Salsk061 [2.6K]3 years ago
4 0

Answer:

correct answer is A I hope it helped you

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Research and development costs should be: A. Expensed in the period incurred. B. Expensed in the period they are determined to b
Vladimir79 [104]

Answer:

The correct answer is letter "A": Expensed in the period incurred.

Explanation:

Research and Development (R&D) costs are spent on the development of new products that could or could not end up being commercially offered. These kinds of costs are usually expensed at the same time they are incurred. According to the U.S. Statement of Financial Accounting Standards, the R&D costs cannot be capitalized.

6 0
3 years ago
Sharman Athletic Gear Inc. (SAG) is considering a special order for 15,000 baseball caps with the logo of East Texas University
Vedmedyk [2.9K]

<u>Solution and Explanation:</u>

The data of SAG of special order is given below:

Cost per unit = $3.50 , Allocated fix cost = $1.50 , Number of units in order = 15000

<u>Calculated the total cost of the special order as follows: </u>

Incremental cost per unit = Cost per unit-Allocated fix cost  =$(3.50 minus 1.50)  =$2

Incremental cost per unit=cost per unit-allocated fix cost  =$(3.50 minus1.50) =$2

Total incremental cost 15000 unit = number of units in order x Incremental cost per unit  =15000 multiply $2  =$30000

Therefore, total cost of the special order is $30000

b) Offering price by ETU = $35000. Hence, the offer made by ETU would affect the short term of the special order.

Contribution cost = $(35000 minus 30000)  =$5000

6 0
3 years ago
Determine what a person should take into account when purchains expensive, durable goods.
Monica [59]
Expected maintenance costs
4 0
3 years ago
The difference between total assets of a firm and its total liabilities is called?
Lena [83]

The difference between the total value of assets and the total value of liabilities is equity. Also known as common equity and owners equity.

Assets represent valuable resources that your company manages. Liabilities represent the company's obligations, while both debt and equity represent how the company's assets are financed.

The sum of the difference between assets and liabilities is equity, which is the remaining net ownership of the company by the owners.

In its simplest form, a balance sheet can be divided into two categories: assets and liabilities. assets are items owned by a company that can provide future economic benefits. A liability is something you owe to another party.

Learn more about Liabilities here brainly.com/question/14921529

#SPJ4

4 0
1 year ago
Happy Frog Inc. is analyzing a project with the following cash flows: Year Cash Flow 0 -$762,000 1 $300,000 2 $-550,000 3 $660,0
Lelechka [254]

Answer:

Happy Frog Inc.

Modified Internal Rate of Return (MIRR) = (Future value of positive cash flows / present value of negative cash flows) (1/n) – 1

= ($1,400,000 /-$1,198,700) (1/5) - 1

= -1.167932 x -0.8

= 0.934

MIRR = 9.34%

Explanation:

a) Future Value of positive cash flows:

1           $300,000

3          $660,000

4          $440,000

Total $1,400,000

b) Present value of negative cash flows:

0         -$762,000

2         -$436,700    ($550,000 x 0.794)

Total -$1,198,700

c) The Modified Internal Rate of Return for Happy Frog Inc. is greater than its Weighted Average Cost of Capital.  Therefore, the project looks very promising and should be accepted.

6 0
3 years ago
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