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8090 [49]
3 years ago
9

Burt Inc. has a number of divisions, including the Indian Division, a producer of liquid pumps, and Maple Division, a manufactur

er of boat engines.
Indian Division produces the h20-model pump that can be used by Maple Division in the production of motors that regulate the raising and lowering of the boat engine's stern drive unit. The market price of the h20-model is $720, and the full cost of the h20-model is $540.
Required:
1. If Burt has a transfer pricing policy that requires transfer at full cost, what will the transfer price be?$
Do you suppose that Indian and Maple divisions will choose to transfer at that price?
2. If Burt has a transfer pricing policy that requires transfer at market price, what would the transfer price be?$
Do you suppose that Indian and Maple divisions would choose to transfer at that price?
3. Now suppose that Burt allows negotiated transfer pricing and that Indian Division can avoid $120 of selling expense by selling to Maple Division.
3. Which division sets the minimum transfer price?
4. What is the minimum transfer price?$
5. Which division sets the maximum transfer price?
6. What is the maximum transfer price?$
7. Do you suppose that Indian and Maple divisions would choose to transfer somewhere in the bargaining range?
Business
1 answer:
Zarrin [17]3 years ago
8 0

Answer:

nothing

Explanation:

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3 years ago
Pencil Corp uses the US dollar as its functional currency. The receivable is not hedged. At December 31, 2020 Pencil has the fol
raketka [301]

Answer:

b. $39,000.

Explanation:

Inventory & Fixed assets will be recognized at historic rate.

Accounts receivable will be recognized at closing rate.

Accounts receivable = FC 30,000 * 0.7

Accounts receivable = $21,000

Inventory = FC 20,000 * 0.6

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Fixed assets = FC 10,000 * 0.6

Fixed assets = $6,000

Total = Accounts receivable + Inventory + Fixed assets

Total = $21,000 + $12,000 + $6,000

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5 0
2 years ago
Q 1.7: A small business owner has decided to form a ______________ after deciding that she wants to maximize revenue, minimize t
Vadim26 [7]

Answer:

Sole proprietorship

Explanation:

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6 0
3 years ago
A company is offering to pay a stadium for naming rights. If the administrative costs for this sponsorship are $78,000, and thes
docker41 [41]

Answer:

The amount of $71,760  , is offered by the company for the stadium naming rights.

Explanation:

As the total cost for the sponsorship is $78,000 but the cost has 8% revenue for the naming sponsorship. Therefore,

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= $78,000 × 8%

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In order to compute the amount which is offered to pay for the stadium rights, the revenue amount to be deducted from the administrative cost:

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Derived demand is demand: Group of answer choices
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Answer:

C) linked to the production and sale of some other item.

Explanation:

• Derived demand is an economic term describing the demand for a good/service resulting from the demand for an intermediate or related good/service.

• Derived demand is solely related to the demand placed on a good or service for its ability to acquire or produce another good or service.

• The principles behind derived demand work in both directions; if the demand for a good decrease, the demand for the goods required to produce the item will also decrease.

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3 years ago
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