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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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Maize Water is considering introducing a water filtration device for its 20-ounce water bottles. Market research indicates that
prohojiy [21]

Answer:

The target cost per unit is $3.44 per unit for the filter

Explanation:

Computing the target cost per unit of the filter as:

Computing revenue as:

Revenue = Maximum price per unit × Selling units

where

Maximum price per unit is $4

Selling units are 1,000,000

So,

Revenue = $4 × 1,000,000

Revenue = $4,000,000

The target profit is as:

Target Profit = Minimum rate of return × Revenue

Target Profit = 14% × $4,000,000

Target Profit = $560,000

Now, computing the target profit per unit as:

Target profit per unit = 14% of $4

Target profit per unit = 14% × $4

Target profit per unit = $0.56

Computing the Target cost as:

Target cost = Maximum price - Target profit per unit

Target cost = $4 - $0.56

Target cost = $3.44 per unit

7 0
4 years ago
Give an example of each of the manufacturing processes: Continuous Flow, Production Line, Batch, Job Shop and Fixed Position Lay
LenKa [72]

Answer:

Continuous Flow: Oil refining.  Chemicals.  Synthetic fibers.  Fertilizers.Pulp and paper. Blast furnace (iron) .Metal smelting. Power stations.

Batch Production :  Baked goods.  Clothing. Computer chips. Computer software.  Die- or mold-making. Electrical goods. Flat-pack furniture. Jet engine production.

Job shop  tool shop, a factory machining center, paint shops, a French restaurant, a commercial printing shop, and other manufacturers .

Fixed-position layout  construction (e.g., buildings, dams, and electric or nuclear power plants), shipbuilding, aircraft, aerospace, farming, drilling for oil, home repair, and automated car washes

Product Line  operations along the production line could include assembly, painting, drying, testing,

Explanation:

Continuous production is a flow production method used to manufacture, produce, or process materials without interruption.

Batch manufacturing is a style of manufacturing which compiles the different components of a product through step by step processes.  

A job shop is a type of manufacturing process structure where small batches of a variety of custom products are made.

In a fixed position layout, personnel, supplies, and equipment are brought to the site where the product will be assembled, rather than the product being moved through an assembly line or set of assembly stations

Product line. The item may move along some kind of conveyor, or be moved manually by staff or forklift.

4 0
3 years ago
A 401(k) plan and the nonprofit equivalent, called a 403(b) plan, are______ reduction plans that reduce your salary by the amoun
castortr0y [4]

A 401(k) plan and the nonprofit equivalent, called a 403(b) plan, are salary reduction plans that reduce your salary by the number of your contributions and result in a lower current tax liability. This is further explained below.

<h3>What is tax liability?</h3>

Generally, Both a 401(k) plan and its counterpart for nonprofit organizations, known as a 403(b) plan, are types of salary reduction plans. These programs cut your pay by an amount equal to the number of contributions you make and result in a reduced tax burden for the current year.

In conclusion, Your financial obligation to the government in the form of taxes is referred to as your tax liability. It is the entire amount of money that you are required to pay to the government as part of your obligation to pay income tax on profits such as salary, business, interest on income from investments, capital gains, and prizes from lottery tickets.

Read more about tax liability.

brainly.com/question/15394738

#SPJ1

3 0
2 years ago
Using the information provided about marketing and advertising law, determine which of the following would be a violation of thi
Vlad1618 [11]

Answer:

Publishing a sale price for an item that is not available

Explanation:

This will be misleading to the market and will break the law as the company must provide promotions for products that are available only

3 0
3 years ago
Aspen's Distributors has a levered cost of equity of 13.84 percent and an unlevered cost of capital of 12.5 percent. The company
Reptile [31]

Answer:

8.60%

Explanation:

We use the MM proposition II with taxes

r_e = r_a + \frac{D}{E} (r_a-r_d)(1-t)

ra 0.125

D 5000

E 9600 (14,600 assets = 5,000 liab + equity)

rd ??

taxes 0.34

re 0.1384

We set p the formula and solve:

0.1384 = 0.125 + \frac{5,000}{9,600} (.125-r_d)(1-.34)

0.1384 = 0.125 + \frac{5,000}{9,600} (.125-r_d)(1-.34)

0.1384 - 0.125 = 0.34375 (.125-r_d)

0.0134 = 0.34375\times 0.125 - 0.34375\times r_d

r_d = (0.34375\times 0.125 - 0.0134)\div 0.34375

rd = 0.860181818 = 8.60%

6 0
3 years ago
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