Answer:
In the question, we are not given information with respect to sales costs, so we can only find total gross sales:
Sales Budget fist 2 quarters of the year
Product Sales Price Sales Q1 Sales Q2 Total gross sales
XQ-103 $14 22,590 27,710 $704,200
XQ-104 $27 14,880 16,200 $839,160
$1,53,360
so,nominally,................... (copied by :- @-Venkatesh Rao cheap tricks-)
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
Answer:
$88,150
Explanation:
DINK method for insurance sums one half of all the debt plus funeral expenses. Thus,
Using DINK method
One half of mortgage, 140,000 = 70000
One half of car loan, 14000 = 7000
One half of personal debts, 4800 = 2400
One half of credit card loans, 3500 = 1750
Funeral expenses = 7000
Thus
Total insurance needed =
70000 + 7000 +2400 + 1750 + 7000
= $88,150
Note that, when using DINK method, what the spouse earn isn't used in calculating total insurance.
