Hi, this is Business statistics. Please help me. Thank you

Materials used by Square Yard Products Inc. in producing Division 3's product are currently purchased from outside suppliers at

BabaBlast [244]

Answer:

(1) option (d) $72,000 (2) option (a)$8,000 (3) option (c)$80,000

Explanation:

Solution

Given:

Now,

(1) The total cost to be paid to the supplier outside is given below:

= 40,000 units x $5 per unit

= $200,000

The price of transfer to be paid to Division 6 is given as:

= 40,000 units x $3.20 per = $128,000

Therefore, the increase in income from operations for Division C is = $200,000 - $128,000 = = $72,000

(2) The income increase from operations is defined below:

Additional Sales x Contribution Per Unit

Thus,

The per unit contribution = Transfer Price – Variable Cost

= $3.20 - $3 = $0.20 per unit

Hence,

The income increase from operations for Division 6 is given as:

= 40,000 units x $0.20 per unit = $8,000

(3) Now,

The Increase of Income from operations for Division C and the Increase in income from operations for Division 6 becomes,

= $72,000 + $8000 = $80,000

3 0

4 years ago

Tristan transfers property with a tax basis of $1,255 and a fair market value of $1,570 to a corporation in exchange for stock w

AlladinOne [14]

Answer: $1531

Explanation:

The corporation's tax basis in the property received in the exchange will be the addition of Tristan's Tax basis and the gain that's recognized on exchange by Tristan.

The gain realized will be:

= $1,570 - $1,255

= $315

Boot received = $276

Therefore, lower of $315 or $276 is $276.

The corporation's tax basis in the property received will then be:

= $1255 + $276

= $1531

4 0

3 years ago

You sell one Huge-Packing August 50 (strike price) call contract and sell oneHuge-Packing August 50 put contract. The call premi

vladimir1956 [14]

Answer:

The strategy only pays off when the stock price in August is between $44.25 and $55.75. Thus, the answer is b.

Explanation:

The investor net gain on premium from option is $1.25 + $4.5 = $5.75.

The investor has to obligation to buy at $50 and obligation to sell at $50 in August.

As a result, Investor paid-off is described according to the spot price, denoted as x, of Hug-Packing in August as below:

Spot price <$50: 5.75 - (50 - x) = x - 44.25

Spot price = $50: $5.75

Spot price > $50 : 5.75 - ( x -50) = 55.75 - x

Thus, the strategy will pay off only when:

(x - 44.25) > 0 and (55.75 - x) <0 or x is between $44.25 and $55.75.

Thus, the answer is b.

7 0

4 years ago

News channels (CNN, FOX, MSNBC, LOCAL NEWS) are best used for:

Valentin [98]

Figuring out what is going on in the world around you including weather, latest political views, and bussiness facts

3 0

3 years ago

Read 2 more answers

What are the tools of macroeconomic policy?

Gnesinka [82]

Answer:

° Fiscal policy

° Monetary policy

° Exchange rate policy

Explanation:

Macro economics policy are tools used by a country's government through their central bank to influence the supply of money, control interest rate in their economy which will lead to economy stability and growth. The tools are explained below. An increase in government spending will make funds available to the household and firms hence increases the volume of money supply in the economy, while a decrease in government spending will also reduce the availability of money to household and firms.

° Fiscal policy . This refers to the use of tax and government expenditure to regulate the supply of money an economy. For instance, government through its central bank uses tax cut to increase the flow of money in an economy. Also, if the government feels that the supply of money in circulation is too much, which could result in inflation, government can increase taxes to be paid by individuals, firms and businesses which in turn will reduce the availability of money.

° Monetary policy. Monetary policy refers to various tools used by the government to control the flow of money in an economy, which includes open market operation, special reserves, interest rate adjustment. For instance, the government through CBN could buy or sell government issued securities which will ultimately affect the supply of money in an economy. Also, there is usually a minimum amount of reserves which must be held by commercial banks, which ultimately affects the supply of money. An increase in reserve ratio reduces the ability of banks to lend money to their customers while and a reduction in the reserve ratio increases their ability to lend to the public hence increases money supply.

° Exchange rate policy. The value of a country's currency in relation to other country's currency is referred to as exchange rate. Exchange rate policy is used to control inflation, preserve the value of domestic currency and also to maintain a favorable external balance of payments of a country.

3 0

3 years ago