When the selling division has some idle capacity, but will have to interrupt current sales to supply the buying division, how is the lowest acceptable transfer price calculated
Answers
When the selling division has some idle capacity, but interrupting current sales to supply the buying division will result in an opportunity cost. In such a scenario, the lowest acceptable transfer price is calculated based on the opportunity cost of the selling division.
The opportunity cost is the potential benefit that the selling division would have received if it had continued to use its idle capacity to generate sales revenue instead of supplying the buying division. Therefore, the lowest acceptable transfer price would be equal to the variable cost of producing the goods transferred plus the opportunity cost of the selling division.
For example, suppose the selling division has idle capacity and can produce 1,000 units of the product at a variable cost of $10 per unit. The selling division's current sales price for the product is $20 per unit, and the buying division can purchase the same product from an external supplier for $15 per unit. In this case, the opportunity cost of the selling division is $5 per unit, which is the potential revenue it would have earned if it had continued to sell the product to its regular customers.
Therefore, the lowest acceptable transfer price would be the variable cost of $10 per unit plus the opportunity cost of $5 per unit, resulting in a transfer price of $15 per unit. The selling division would be indifferent between supplying the buying division at $15 per unit or continuing to produce and sell to its regular customers at $20 per unit, as both options result in the same profit of $10 per unit.
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Related Questions
3.5. In a public limited company, the losses are
borne by the
(A) staff
(B) directors
(C) community
(D) shareholders
Answers
Answer: D
Explanation: Had this test before
Answer:
d
Explanation:
]
If you were paid $952 today, and you invested it at a 5% interest rate, how much would you have a year from now?
$900
O a
$952
b.
$985
Oc.
$1000
d
None of these
e
Answers
Answer:
Depends on if its simple or compund bu since your investing to earn, ill estimate they want the compound answer which is 999.60 which can be rounded to $1000. If they want it rounded, its $1000 if they dont, it's none of the above
Explanation:
A=P(1+r)t
A=952(1+0.05)1
A=952(1.05)1
A=952(1.05)
A=952x1.05
A=999.60 which can be rounded to 1000
What are the steps (in sequence) involved in the consumer decision making process? Briefly explain how the retailer can develop strategies during each step so that the customer favors the retailer
Answers
Answer:
Problem recognition: Recognizes the need for a service or product
Information search: Gathers information
Alternatives evaluation: Weighs choices against comparable alternatives
Purchase decision: Makes actual purchase
Post-purchase evaluation: Reflects on the purchase they made
Explanation:
there are 5 steps in the consumer decision making process.
Which of the following help to build credit?
Defaulting on a loan
Good rental history
Employment stability
A college degree
Opening a bank account
Answers
Answer:
Good rental history and employment stability are two things that help to bulid a good credit score.
Although claimed to be seen by many, the Loch Ness Monster's existence has not been..............
a. culminated
b. complicated
c. sophisticated
d. authenticated
Answers
how do you become popular
Answers
Answer:
Spread the word; advertisements
Explanation:
In order to get popular you need to spread the word about your business, you needadvertisementst,s and sometimes even create your own website. Some website makers include Wix.
free brainliest whoever answers first
Which examples demonstrate common Banking and Related Services workplaces and employers? Check all that apply.
Answers: A, C, E
Bud stands at a counter helping customers with deposits and withdrawals.
Tobias works for an investment company analyzing investment opportunities.
Thanh analyzes a customer’s application for a mortgage in a mortgage company office. Lourdes works for the stock market managing transfers of stock.
Jill meets with a customer in a credit union to discuss a loan.
Suzanne sells health insurance.
Answers
Answer:
ace of spades A C E
Explanation:
Answer:here's the right answer for this question
Explanation:edge2023
What was yesterdays Price? Whats todays Price?
Find 5 stocks that you are interested in investing in. Give the company Name, Ticker Symbol, Share price today and What the Company does?
Pls do it pls I need it really needed it for today pls answer it
Answers
Answer:
The price is higher then it was yesterday
Explanation:
Wat is NOT taken into account when determining a person's career path?
Answers
Answer:
genetics
Explanation:
Selecting a target market involves all of the following steps EXCEPT
A) grouping customers with similar need sets.
B) selecting an attractive group to target.
C) describing each group.
D) identifying product-related need sets.
E) all of the above are involved.
Answers
Selecting a target market involves all of the following steps EXCEPT all of the above are involved
A target market is a population that has been chosen because of similar traits like age, education, and lifestyle as the most probable candidates to purchase a product. A target market is a particular group of people having common traits to whom a company offers its goods or services. Target markets assist businesses fully comprehend their potential clients so they may develop marketing strategies that support their commercial and marketing goals.
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When using the substitution method to solve this system of equations, which of the following represents the first step?
Answers
Explanation:
The first step in using the substitution method to solve a system of equations is to solve one of the equations for one of the variables in terms of the other variable(s). This will allow you to substitute the expression you found into the other equation and solve for the remaining variable(s).
The average life expectancy of which type of economy is generally very high?
A.
economies with a high HDI and GDP
B.
economies with a low HDI and GDP
C.
economies with a high GDP
D.
economies with a low GDP
E.
economies with a high PPP only
Answers
Answer:
c
Explanation:
im not 100% sure but i think c is the one
Which of the following tools and
techniques are included in the Monitor
Stakeholder Engagement process?
a. Expert judgment
b. Decision-making
c. Inspection
d. Agreements
Answers
Option a is correct. Meetings are one of the tools and techniques in the process of managing stakeholder engagement. The six tools and techniques are expert judgment, testing, communication skills, interpersonal and team skills, ground rules, and meetings.
As the title itself suggests, it is the process of tracking actual project performance against planned project management activities. A monitoring and control process is a control function that takes place at all stages of a project, from initiation to completion.
A key benefit of this process is that it allows stakeholders to understand the current status of the project, steps taken, and budget, schedule, and scope projections.
Project managers must be able to balance requirements arising from different knowledge areas through a process of monitoring and control. For example, a project manager may experience a situation where a project was completed on time but did not meet the quality standards outlined in the project management plan.
Likewise, this project could be of considerable size, but unfortunately time and cost limits are exceeded. Therefore, the process of monitoring and controlling project work is considered very important.
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If my revenue is one million and my expenses are 1,386,000, what's my profit in percentage
Answers
The profit in percentage given the revenue and the expenses is -38.60%
What is the profit in percentage?Percentage is the fraction of a number expressed as a value out of 100. The sign that is used to represent percentage is %. In order to convert a number to percentage, multiply by 100.
Profit is the difference between revenue and expenses. Revenue is the total income earned by a company before any deductions are made. Expenses include all the cost incurred in running a business.
Profit = revenue - expenses
1,000,000 - 1,386,000 = -386,000
Profit in percentage = (profit / revenue) x 100
(-386,000 / 1,000,000) x 100 = -38.6%
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What is demand comprised of
Answers
When demand and production increase, what usually decreases?
Answers
Answer:
Price usually decreases
Explanation: When a product’s demand and production increase, PRICE usually decreases.
Answer:
Prices
Explanation:
Take the example of Apple. If Apple was to lower the price of the iPhone 11 to 300 dollars then there would be way more people buying the iPhone. Demand went up because prices went down
When your tire blows out in the middle of a drive, you should
Answers
get out of the car and change it
Do the benefits of tax withholding outweigh the costs?Why or why not?
Answers
Answer:
:)
Explanation:
Yes, the benefits of tax withholding outweigh the costs.
Reason: tax withholding helps to make sure that everyone pays their fair share of taxes and that the government has the funds that it needs to provide services and maintain infrastructure.
On the other hand, it also means that the people have less money to spend on things like food and shelter.
So it is a compromise that we as the society have to agree upon. But it is a compromise that is worth it for the overall benefits that it brings.
An asset's residual value is ______. (Check all that apply.) Multiple select question. equal to its accumulated depreciation the estimated amount it can be sold for at the end of its useful life its cost plus any costs to install it and place it in service its cost minus its accumulated depreciation the same as its salvage value
Answers
An asset's residual value is the estimated amount it can be sold for at the end of its useful life.
All assets have what we refer to as the useful life which is the period of time in which the assets have an optimal yield. After a certain period, depreciation takes place and the assets aren't able to perform optimally hence the sale in what we refer to as the residual condition/value.
All assets also have a residual value which is why goods bought today and used can't be sold at the same rate/price as depreciation starts to set in the moment usage commences.
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What is the difference between using an action button to play an audio file via 'play sound' and an audio clip set up through the Media Group?
Answers
Answer: The action button lets users play the audio file, the sound button will play an audio clip.
Explanation:
The action button lets users play the audio file once it is clicked or has a mouse over action over the assignment button. The sound button will play an audio clip that you have specified in the action settings dialog box.
What are the three ways the argument section of a cover letter can be formatted
Answers
explain why modern economics are becoming increasingly global
Answers
from 1960 to 1970, the consumer price index (CPI) increased from 29.6 to 38.8 if a dozen tangerines cost 0.31 in 1960 and the price of tangerines increase at the same rate as the CPI from 1960 to 1970, approximately how much did a dozen tangerines cost in 1970
Answers
Answer: $0.41
Explanation:
A consumer price index measures the average price changes of goods that are bought by people in an economy. It shows the level of inflation in an economy.
To calculate the cost of a dozen tangerines in 1970we have to know the percentage increase in price index from 1960 to 1970 and this will be:
= [(38.8 – 29.6) / 29.6] × 100%
= (9.2 / 29.6) × 100%
= 31.08%
Let's represent the price of a dozen tangerines in 1970 by X and solve. This will be:
31.08 = (X - 0.31) × 100 / 0.31
Cross multiply
(31.08 × 0.31) = 100X - 31
9.6348 = 100X - 31
100X = 9.6348 + 31
100X = 40.6348
X = 40.6348 / 100
X = 0.46348
X = 0.41
Therefore, the cost of a dozen tangerines in 1970 is $0.41
any two importance of office resources
Answers
Two importance of office resources are greater output and promote productivity .
What are office resources ?All of the resources and amenities found in an office, including people, tools and supplies, furniture and equipment, cash, modes of transportation, and communication, are referred to as office resources. These resources are used to help the organization achieve its goals.
Two improtance of office resources are:Greater output is made possible because every business strives to produce as much as possible while using the fewest resources possible. Better resource utilization management can be used to accomplish such a feat.It helps to promote productivity: Office supplies aid in boosting office employees' productivity. Equipment such as furniture, machinery, and other items make work more comfortable and convenient, which improves worker productivity.Learn more about office resources here https://brainly.com/question/20436648
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Jane runs a small manufacturing business. She obtained a short-term loan to finance her business a few months ago. She now needs to pay off this debt in less than a year. The loan amount will thus be seen as a in her business’s balance sheet
Answers
Jane is the owner of a small manufacturing company. A few months ago, she secured a short-term loan to fund her company. She now has less than a year to pay off this loan.
What do you mean by manufacturing?
Manufacturing is the process of creating products by hand or machine that will eventually be sold to customers. A product's raw materials or component parts may be used in manufacture. Typically, manufacturing takes place on a huge production line using equipment and experienced labor. What is a Manufacturing Example? Manufacturing is the process of creating new goods from components or raw materials. Automotive businesses, bakeries, shoemakers, and tailors are all examples of manufacturing because they all produce goods rather than provide services.
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Which of the following statements best describes the difference between the USDA’s and the FDA’s responsibilities concerning food?
1.The USDA monitors what is put on the food’s label while the FDA ensures safe farming and harvesting practices.
2. The USDA monitors what is put on the food’s label while the FDA protects environmental conditions.
3.The USDA ensures safe farming and harvesting practices while the FDA protects environmental conditions.
4.The USDA ensures safe farming and harvesting practices while the FDA monitors what is put on the food’s label.
Answers
Answer:A. The USDA ensures save farming and harvesting practices while the FDA monitors what is put on the food labels!
Explanation: I just took it and got it right! Give me brainliest! Have a good day!
Answer:
The USDA makes sure that there is safe farming and safe harvesting practices when the FDA watches what is put on food levels
Explanation:
With the decline of fuel price globally, airline companies continue to reap the benefits. What impact will this have an Emirates' business strategy in the future?
Answers
Answer: It wouldn't have any impact on Emirates business strategy in the future as Emirates 26years long plan has helped them to be at the very top of their game with continuous profit
Explanation:
It wouldn't have any impact on Emirates business strategy in the future as Emirates 26years long plan has helped them to be at the very top of their game with continuous profit. The company's human resource are lean already and they are cost effective making them to be ahead of the competitors
To some people, speaking in public is not a stressor.
A. True B. False
Answers
Answer:
A. true
Explanation:
because of their experiences
Answer:
A. true
Explanation:
An advantage of using capital in the production process is that it:.
Answers
Hope that helps, have a good day :)
A theater has fixed operating costs, such as electricity, salaries, and rent. What is this break-even point called
Answers
The fixed operating cost in the question is one of the requirement to be used to calculate the Break even units not the break-even point.
Usually, the break-even point is the point where the total revenue equals the total costs of the business.
In other word, the break-even point means that the expenses and revenue are equal and thus, the company will record neither a net loss or gain.
The formula used to derive the Break even unit is [Fixed Costs / (Sales price per unit – Variable costs per unit)}
Therefore, the fixed operating cost in the question is one of the requirement to be used to calculate the Break even units not the break-even point.
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