The following is NOT a reason to make an item in a company’s own operations: Lack of expertise in-house.In-house refers to a company or organization's internal operations, and in-house manufacturing implies that all components of a product are produced within the organization itself.
This entails that a company manufactures and fabricates its items from beginning to end.However, the lack of in-house expertise is not a compelling reason to make an item in a company's operations. It is preferable to outsource such tasks to experienced professionals. The following are some reasons to make an item in a company’s own operations:Use existing idle capacity.Protect proprietary technology.Control lead-time, transportation, and warehousing cost.
To know more about company's operations. It visit
https://brainly.com/question/29690696
#SPJ11
A furniture store has a sofa on sale for $800 with the payment due one year from today. The store is willing to discount the price at an annual rate of 3.5% if you pay today. What is the amount if you pay today? O $934 O $849 O $702 $772 $1,02
If you pay today, the amount you would need to pay is $772.
To calculate the amount you would need to pay today, we'll consider the discount provided by the furniture store. The discount rate is 3.5% per year, and the payment is due one year from today.
Let's calculate the discount first. The discount amount is determined by multiplying the original price of the sofa by the discount rate. In this case, the discount is 3.5% of $800:
Discount = 0.035 * $800 = $28
To determine the amount you would need to pay today, subtract the discount from the original price:
Amount to pay today = Original price - Discount = $800 - $28 = $772
Therefore, if you pay today, the amount you would need to pay is $772.
To learn more about discounts
https://brainly.com/question/1548141
#SPJ8
Monica has monthly gross earnings of 87, 247.00 as a self-employed curriculum developer. Determine the amount she owes to the IRS if her federal income tax calculation, using the percentage method is 169.79 plus 15% 82, 25-4, and she has zero withholding allowances. Note: A self-employed individual pays 12.4% Social Security tax and 2.9% Medicare tax A.82,148.75 B.$1,986.49 C.82,296.09 D.$2,027.53
The correct option is B. $1,986.49.
Monica, who is a self-employed curriculum developer, has a monthly gross earning of $87,247.
The federal income tax calculation using the percentage method for Monica is $169.79 plus 15% of the amount over $82, 254, and she has zero withholding allowances.
A self-employed individual pays 12.4% Social Security tax and 2.9% Medicare tax.
Therefore, the amount Monica owes to the IRS is B. $1,986.49.
To calculate Monica's federal income tax:First, we need to find the amount over $82,254 = $87,247 - $82,254 = $4,993.Then, 15% of $4,993 = $749.95.
Monica's federal income tax = $169.79 + $749.95 = $919.74.
To calculate Social Security tax and Medicare tax:
Social Security tax = 12.4% of $87,247 = $10,802.81.Medicare tax = 2.9% of $87,247 = $2,524.18.
The total tax amount owed by Monica = $919.74 + $10,802.81 + $2,524.18 = $14,246.73. Subtracting $14,246.73 from Monica's gross earnings gives her net pay.
Monica's net pay = $87,247 - $14,246.73 = $73,000.27.
Therefore, the correct option is B. $1,986.49.
To know more about Medicare tax visit:
https://brainly.com/question/31558492
#SPJ11
A self-employed individual pays 12.4% Social Security tax and 2.9% Medicare tax $1,986.49. Thus, option (b) is correct.
We must compute Monica's Social Security, Medicare, and federal income taxes using the percentage technique in order to ascertain the amount she owes the IRS.
Medicare tax: 2.9% of $87,247.00 Medicare tax = $2,527.53 Social Security tax: 12.4% of $87,247.00 Social Security tax
Social Security and Medicare taxes deducted from gross income: $87,247.00 - $10,807.63 - $2,527.53
Federal income tax: $169.79 plus 15% of ($73,911.84 - $82,254), which comes to $1,986.49 Social Security and Medicare taxes: $73,911.84
As a result, Monica owes the IRS $15,321.65 ($10,807.63 + $2,527.53 + $1,986.49).
Therefore, option (b) is correct.
Learn more about on Federal income tax, here:
https://brainly.com/question/30200430
#SPJ4
From your understanding in today's lecture, write this answer with vast explanation with examples !!!
a) Imagine you are given a dataset on car sales in different regions and are asked to calculate descriptive statistics. How would you set up the analysis procedure?
b)Why survey is the most widely used method in market research?
c) What are the basic elements of any written research report?
a) To analyze the given dataset on car sales, the analysis procedure would involve calculating descriptive statistics.
This would include identifying the variables of interest, organizing the data, and then applying various statistical measures such as measures of central tendency (mean, median, mode) and measures of dispersion (standard deviation, range) to summarize the data and understand its characteristics.
b) Surveys are the most widely used method in market research due to their versatility, efficiency, and ability to gather data from a large number of respondents. Surveys allow researchers to collect a wide range of information, including attitudes, preferences, behaviors, and demographics.
They can be administered through various channels such as online surveys, phone interviews, or paper questionnaires, making them accessible to a diverse population. Surveys also provide standardized and quantifiable data, allowing for easy analysis and comparison across different groups or time periods.
c) The basic elements of any written research report include the introduction, literature review, methodology, results, discussion, and conclusion.
The introduction provides background information, research objectives, and the rationale for the study. The literature review summarizes relevant previous research and theoretical frameworks. The methodology section explains the research design, data collection methods, and sample characteristics. The results section presents the findings and includes statistical analysis, tables, and figures.
The discussion interprets the results, relates them to previous research, and explores implications. The conclusion summarizes the main findings, discusses limitations, and suggests future directions. Proper citation and referencing are also essential components of a research report.
Learn more about dispersion click here;
brainly.com/question/32963114
#SPJ11
In a(n) type of simulation, trainees are given a set of business tools and asked to make decisions that will impact the business. Multiple Choice decision-making branching story virtual lab interactive spreadsheet.
The simulation is called a "Multiple Choice decision-making branching story virtual lab interactive spreadsheet" simulation.
In this type of simulation, trainees are presented with a virtual environment that includes a set of business tools. These tools can vary but typically include interactive spreadsheets, decision-making branching storylines, and multiple-choice options. Trainees are then tasked with making decisions within the simulation that will have direct impacts on the virtual business.
The use of interactive spreadsheets allows trainees to analyze and manipulate data, such as financial information or market trends, in order to inform their decision-making process. The decision-making branching storylines offer a dynamic narrative structure where the trainees' choices lead to different outcomes and consequences for the virtual business.
By engaging in this simulation, trainees can develop their business acumen, critical thinking skills, and ability to make strategic decisions in a realistic and immersive virtual environment. The combination of multiple-choice decision-making and interactive tools provides a hands-on and engaging learning experience for trainees to apply their knowledge and skills in a simulated business setting.
To learn more about decision-making visit:
https://brainly.com/question/1249089
#SPJ11
Super-Weight, a manufacturer of exercise equipment, recently manufactured an exercise bicycle. The sales information states that this Super-Cycle 1500 will "help those who desperately need to lose weight lose it by cycling 20 minutes a day." You have been selected to market the product to those people who weigh over 250 pounds. What kinds of statements could constitute an implied warranty of fitness?
The Super-Cycle 1500 exercise bicycle is marketed to individuals over 250 pounds, with statements implying its suitability and safety for users in that weight range, constituting an implied warranty of fitness.
When marketing the Super-Cycle 1500 to individuals weighing over 250 pounds, the following statements could imply a warranty of fitness:
1. "Our Super-Cycle 1500 is designed to support users weighing over 250 pounds, ensuring a safe and effective workout experience."
2. "With its sturdy construction and durable materials, the Super-Cycle 1500 is built to accommodate individuals with higher weight capacities."
3. "Experience a comfortable and efficient workout with the Super-Cycle 1500, specifically engineered for users seeking weight loss, even if you're over 250 pounds."
4. "Our exercise bicycle provides a smooth and stable ride, making it an ideal choice for individuals of all weights, including those over 250 pounds."
5. "Count on the Super-Cycle 1500 to assist you in achieving your weight loss goals, no matter your current weight, thanks to its specially designed features."
These statements suggest that the product is suitable and safe for individuals weighing over 250 pounds, thereby implying an implied warranty of fitness for that specific user group.
To learn more about suitability click here
brainly.com/question/33121781
#SPJ11
What are the three sources of cost of quality. in project risk management ?
The three sources of cost of quality in project risk management are prevention costs, appraisal costs, and failure costs, which include internal and external expenses related to defects and errors.
The three sources of cost of quality in project risk management are prevention costs, appraisal costs, and failure costs. Prevention costs involve activities to prevent defects, such as training and quality planning. Appraisal costs include inspections and testing to evaluate conformance to quality requirements. Failure costs encompass internal costs like rework and corrective actions, as well as external costs like warranty claims and reputational damage.
To mitigate these costs, project teams should focus on proactive measures like quality audits and process documentation to prevent defects from occurring. They should also invest in thorough inspections and testing to catch any issues early on. By addressing quality risks effectively, projects can minimize the overall cost of quality.
Therefore, The three sources of cost of quality in project risk management are prevention costs, appraisal costs, and failure costs, which include internal and external expenses related to defects and errors.
To learn more about appraisal costs click here
brainly.com/question/32366635
#SPJ11
Targeting by Decile: The "Percent of Business" is based upon the sum total of the sales of the Market Basket and not our Product exclusively True O False
False. The "Percent of Business" in targeting by decile is based on the sum total of sales of our product exclusively targeting by decile, Percent of Business, sales, our product .
In targeting by decile, the goal is to segment customers into groups based on their purchasing behavior and allocate marketing efforts accordingly. One common approach is to divide customers into ten equal groups or deciles based on their sales volume. The "Percent of Business" refers to the portion of total sales that each decile represents.
When calculating the "Percent of Business," it is important to consider only the sales of our product, rather than the sum total of the market basket. This means that we focus solely on the sales generated by our specific product when determining the percentage contribution of each decile.
By accurately attributing the sales to our product, we can better understand the performance of each decile and make informed marketing decisions to target high-value segments.
Learn more about Percent of Business from the given link https://brainly.com/question/14300383
#SPJ11.
PST varies from province to province. False True
The statement "PST varies from province to province" is TRUE. PST stands for Provincial Sales Tax, a sales tax paid when purchasing certain goods or services in the province. It is a provincial tax imposed on taxable goods and services purchased for personal consumption, use, or enjoyment in the province. The rate of PST varies from one province to the next.
As a result, depending on where you buy your goods or services, the tax rate varies. The following are the present PST rates for different provinces:Ontario, Quebec, Nova Scotia, and Newfoundland and Labrador: There is no provincial sales tax (PST) in these provinces.
Saskatchewan: 6%
P.E.I: 10%
Manitoba: 7%
British Columbia: 7%
New Brunswick: 10%
Northwest Territories: 5%
Yukon: 5%
Nunavut: There is no provincial sales tax (PST) in Nunavut.
Learn more about Provincial Sales Tax from the given link
https://brainly.com/question/27804567
#SPJ11
Assume that you will pay $1,250 cash annually for three years (at the end of the year), and that the discount rate is 3%.
Calculate the present value using a PV of an ordinary annuity table.
The present value of receiving $1,250 cash annually for three years (at the end of the year) with a discount rate of 3% is approximately $3,405.88.
To calculate the present value of an ordinary annuity, you can use the PV (Present Value) factor from a PV of an ordinary annuity table. In this case, we have the following information:
Cash payment per year: $1,250
Number of years: 3
Discount rate: 3%
To calculate the present value, you need to find the PV factor for a 3-year annuity at a 3% discount rate from the table. The PV factor represents the present value of $1 received at the end of each year for a certain number of years at a given discount rate.
Looking up the PV factor for a 3-year annuity at a 3% discount rate in the PV of an ordinary annuity table, you will find the factor to be approximately 2.7247.
Now, you can calculate the present value by multiplying the cash payment per year by the PV factor:
Present Value = Cash payment per year * PV factor
Present Value = $1,250 * 2.7247
Calculating the above expression, we find:
Present Value ≈ $3,405.88
Therefore, the present value of receiving $1,250 cash annually for three years (at the end of the year) with a discount rate of 3% is approximately $3,405.88.
Learn more about present value here
https://brainly.com/question/28304447
#SPJ11
An employee whose regular hourly rate is $24 and whose overtime rate is 150 times the regular rate worked 45 hours one week. The employee's gross pay was 2020019 Mc Graw W Multiple Choice O O O $176.00 $1304.00 $1032.00 $1656.00
Therefore, the answer is not one of the Mc Graw W Multiple Choice options provided. It is $18,960.
The employee’s regular rate is $24 per hour, which implies that their overtime rate is $24 x 150 = $3600 per hour.
The gross pay is calculated as the sum of the total regular pay and the total overtime pay.
The total regular pay is calculated as 40 hours x $24 per hour, which is $960.
The total overtime pay is calculated as 5 hours x $3600 per hour, which is $18,000.
Thus, the total gross pay is the sum of the total regular pay and the total overtime pay, which is $960 + $18,000 = $18,960.
Therefore, the answer is not one of the Mc Graw W Multiple Choice options provided. It is $18,960.
To know more about gross pay visit:
https://brainly.com/question/13143081
#SPJ11
Calculating 'cash flows at the start'
Unison Limited is evaluating whether to replace its old machine with a new one that costs $400,000 and is expected to have an economic life of five years. The company spent $45,000 last year on a marketing consultant who identified $65,000 of new sales opportunities with the new machine, starting next year. The new machine will be partly financed with a $300,000 equity capital raising.
The old machine could be sold today for $50,000, although it has been fully depreciated for tax purposes. Unison plans on using the $50,000 sale proceeds to pay a dividend to shareholders today.
The new machine will result in a $5,000 reduction in inventory from its current level of $60,000. However, it is anticipated that accounts payable will increase by $7,000 from its current level. Accounts receivable will remain unchanged at $50,000 whether the new asset is purchased or not.
Installation of the new machine costs $6,000 today and the tax office confirms that this expense is tax deductible.
Assume the company tax rate is 30%.
What are the 'cash flows at the start'?
(5 marks)
The cash flows at the start for Unison Limited can be calculated as follows:
- Cash inflow from the sale of the old machine: $50,000
- Cash inflow from the equity capital raising: $300,000
The cash flows at the start refer to the cash inflows and outflows that occur at the beginning of the investment project. In this case, Unison Limited is considering replacing its old machine with a new one. The cash flows at the start include the cash inflow from the sale of the old machine and the cash inflow from the equity capital raising.
The company plans to sell the old machine for $50,000. Although the machine has been fully depreciated for tax purposes, it still has a market value. The proceeds from the sale will result in a cash inflow.
Additionally, Unison plans to raise $300,000 through equity financing to partially finance the purchase of the new machine. This injection of equity capital will also result in a cash inflow at the start of the project.
These cash inflows represent the initial funds that will be available to Unison for the investment in the new machine. They are considered part of the cash flows at the start because they occur before any other cash flows associated with the project, such as operating cash flows or cash flows from the sale of products or services.
Learn more about finance here:
brainly.com/question/30502952
#SPJ11
PUTRAJAYA: According to the National Health and Morbidity Survey (NHMS) 2019, more than two thirds of premature deaths were caused by non-communicable diseases (NCD) that were not diagnosed in time. In addition, the report discovered that during the decade-long assessment period of the survey, one out of every five adults in the country was given a diagnosis of diabetes, three out of every ten people were given a diagnosis of high blood pressure, and four out of every 10 people were given a diagnosis of high cholesterol. According to the Minister of Health, Khairy Jamaluddin, the numbers provided a disheartening and worrisome glimpse of the route that lied ahead for Malaysia, which was risky and concerning. "Noncommunicable diseases, if left unchecked, will lead to an increase in cardiovascular diseases, which will immediately increase the number of persons with impairments, as well as the expenditures associated with healthcare." According to Khairy, one of the most significant barriers that prevents persons in the B40 income level from receiving the appropriate and timely healthcare or treatment is a lack of financial resources. According to Khairy, the government has restarted its fight against NCDs now that the country has begun shifting into the endemic phase of the Covid-19 virus. "To ensure that our nation is among the healthiest in South East Asia, we not only provide medical treatment, but also focus on disease prevention and the promotion of healthcare. Right now, we're probably the worst," he remarked. Question: 1. Explain the determinant factors of poor health outcome among population? 2. Describe the health management concepts in dealing such health threat ? 3. Explain, why health parameters and indicators are important in evaluating health services. 4. Explain the characteristic of good healthcare delivery in order to prevent NCDs
1. Determinant factors of poor health outcomes among population include inadequate access to health care, lack of education, and low socioeconomic status, as well as unhealthy lifestyles like poor diet, lack of exercise, smoking, and excessive alcohol consumption.
These can lead to the development of non-communicable diseases (NCDs) that are not diagnosed in time, and cause premature death.2. Health management concepts in dealing with such health threats include promoting health through lifestyle changes, increasing access to healthcare services, improving public health education, and developing public health policies to control NCDs and ensure the quality of care. These measures can help in preventing or reducing the incidence of NCDs and associated risk factors.3.
Health parameters and indicators are important in evaluating health services because they provide a standardized way to assess the quality of care, monitor trends and patterns of diseases, and identify areas for improvement. Some of these parameters and indicators include mortality rates, morbidity rates, life expectancy, health care access, and quality of care.4. Characteristics of good healthcare delivery to prevent NCDs include a strong primary health care system that emphasizes disease prevention and health promotion.
To know more about Poor health visit:-
https://brainly.com/question/18849788
#SPJ11
provide threats or safeguard of this casestudy Case Study 3: Question: Discuss the categories of threats that may be involved in each of the following mutually exclusive situations and advise the partners of the concerned firms with regard to the possible course of action that may be adopted in each case: (a) Muneer is a Chartered Accountant and employed as a manager in a firm of Chartered Accountants. He has informed the engagement partner that his close relative holds 50,000 shares of a listed company whose audit is to be supervised by Muneer. (b) Danial is employed in a firm of Chartered Accountants. He has been a member of the audit team of Malakand Limited for the last few years. (10) (ICAP, CAF 08 Level - Spring 2013, Q#8) Solution:
(a) Threats 1. Self-Interest Threat: Muneer's close relative holding shares in the audited company creates a conflict of interest. Muneer may prioritize his relative's interests over the objective and impartial conduct of the audit.
Safeguard:Muneer should disclose the conflict of interest to the engagement partner and recuse himself from any involvement in the audit of the listed company. Another qualified professional should be assigned to supervise the audit to ensure objectivity and independence.
(b) Threats:1. Familiarity Threat: Danial being a member of the audit team of Malakand Limited for several years may develop a close relationship with the client, leading to bias or loss of objectivity in the audit process.
Safeguards: To mitigate the familiarity threat, the following safeguards can be implemented:
- Rotation of audit team members periodically to prevent overfamiliarity.
- Regular monitoring and review by senior management or partners not involved in the audit to maintain independence and objectivity.
- Implementing policies and procedures to promote ethical conduct and independence, such as maintaining professional skepticism and applying professional judgment.
In both cases, it is crucial for the partners of the concerned firms to enforce a strong ethical culture, ensure compliance with professional standards, and provide training and guidance to their employees regarding independence, objectivity, and ethical conduct.
Regular monitoring and review of audit engagements should be conducted to identify and address any potential threats to the integrity of the audit process.
To learn more about audit click here:
brainly.com/question/33219053
#SPJ11
shelly offers to sell jane goods both parties know are stolen. jane accepts the offer, and agrees to pay for the goods. later, jane refuses to accept or pay for the goods. if shelly sues jane for breach of contract, what is the probable result?\
If Shelly sues Jane for breach of contract after Jane refuses to accept or pay for the stolen goods, the probable result is that Shelly's claim will be unsuccessful.
This is because the contract they entered into was illegal and against the law. Selling stolen goods is illegal and against public policy. Courts generally do not enforce contracts that involve illegal activities. Therefore, Shelly will not likely be able to recover any damages or obtain any legal remedy against Jane for the breach of contract. It is important to note that engaging in illegal activities, such as buying or selling stolen goods, can lead to serious legal consequences.
To know more about contract visit:
https://brainly.com/question/32254040
#SPJ11
What are the advantages and disadvantages of using cost
leadership, differentiation, and focused strategies? Please provide
thorough discussion and separate each section by paragraph.
The suitability of a particular strategy depends on various factors such as industry dynamics, target market, resources, and competitive landscape.
1. Cost Leadership Strategy:
Advantages:
- Competitive Advantage: Implementing a cost leadership strategy allows a company to offer products or services at lower prices than its competitors, which can attract price-sensitive customers. This competitive advantage can lead to increased market share and customer loyalty.
- Economies of Scale: Pursuing a cost leadership strategy often requires achieving economies of scale through large-scale production or purchasing. This can result in cost savings, higher efficiency, and improved profit.
- Price Stability: Cost leaders are better positioned to handle price competition as they can absorb price fluctuations and still maintain profitability.
Disadvantages:
- Price Sensitivity: While a cost leadership strategy can attract price-sensitive customers, it may struggle to retain customers who value other factors besides price, such as quality or unique features.
- Vulnerability to Technological Changes: Rapid technological advancements can render cost leadership strategies ineffective if new technologies allow competitors to achieve even lower costs or differentiate themselves effectively.
- Lack of Innovation: Cost leaders often prioritize cost reduction over innovation, which can result in a limited ability to adapt to changing customer preferences or market trends.
2. Differentiation Strategy:
Advantages:
- Premium Pricing: Differentiation strategies allow companies to offer unique and valuable products or services that command higher prices. This can lead to increased profitability and enhanced brand image.
- Customer Loyalty: Differentiated offerings create a loyal customer base that values the distinctive features, quality, or brand reputation. Such customers are often less price-sensitive and more willing to remain loyal even when faced with competitor's lower-priced alternatives.
- Barrier to Entry: Effective differentiation can create a barrier to entry for competitors. It can be challenging for new entrants to replicate or surpass the unique features or customer experience offered by established differentiated brands.
Disadvantages:
- Higher Costs: Implementing a differentiation strategy often involves additional costs, such as research and development, marketing, or maintaining unique product features. These costs may erode profit margins and make it challenging to compete solely on price.
- Imitation: Successful differentiation strategies may be imitated by competitors, diminishing the uniqueness of the offering and reducing the competitive advantage over time.
3. Focused Strategies:
Advantages:
- Targeted Market Segments: Focused strategies allow companies to concentrate their resources and efforts on specific niche markets or customer segments. By understanding the unique needs and preferences of these segments, companies can deliver tailored offerings, building strong customer relationships and loyalty.
- Reduced Competition: Focusing on niche markets can reduce direct competition, as other companies may not prioritize or adequately serve those segments. This can enhance the company's market position and profitability.
- Expertise and Customization: Focused strategies enable companies to develop deep expertise and specialized knowledge in serving their chosen market segments. This expertise allows for customized products or services that better meet customer needs, fostering customer satisfaction and loyalty.
Disadvantages:
- Market Volatility: Focused strategies may leave a company vulnerable to market fluctuations or changes in consumer preferences within the targeted segment. If the niche market experiences a decline or becomes saturated, the business could face significant challenges.
- Dependency on a Single Segment: Relying heavily on a single market segment exposes the business to risks associated with that segment's performance. Economic downturns or shifts in customer behavior specific to that segment can have a severe impact on the company's revenues and sustainability.
- Limited Growth Potential: Focused strategies inherently limit the company's potential customer base. This may restrict opportunities for significant expansion and growth compared to companies operating in broader markets.
It's important to note that each strategy has its own advantages and disadvantages, and the suitability of a particular strategy depends on various factors such as industry dynamics, target market, resources, and competitive landscape.
Businesses should carefully evaluate these factors before deciding on the most appropriate strategy for their specific context.
learn more about profit here: brainly.com/question/29662354
#SPJ11
A project costs $200,000 and produces an annual cash flow of $80,000 for three years. Calculate the NPV using a 6% discount rate. Use this figure to explain if the IRR for the project is greater than 6% or less than 6%. ( 2 marks )
the NPV of the project is $75,471.70. The positive NPV indicates that the project's IRR is greater than the 6% discount rate.
The net present value (NPV) of the project can be calculated by discounting the annual cash flows at the given 6% discount rate. The formula for NPV is:
NPV = CF₁ / (1+r)¹ + CF₂ / (1+r)² + CF₃ / (1+r)³ - Initial Cost
where CF₁, CF₂, and CF₃ are the annual cash flows and r is the discount rate.
Using the given information, the NPV can be calculated as follows:
NPV = $80,000 / (1+0.06)¹ + $80,000 / (1+0.06)² + $80,000 / (1+0.06)³ - $200,000
Simplifying the equation, we get:
NPV = $75,471.70
The NPV for the project is $75,471.70.
Now, to determine if the Internal Rate of Return (IRR) for the project is greater or less than 6%, we can compare the NPV with zero. If the NPV is positive, it means the project is expected to generate a return greater than the discount rate (6% in this case), and if the NPV is negative, it means the project is expected to generate a return lower than the discount rate.
Since the NPV of $75,471.70 is positive, we can conclude that the IRR for the project is greater than 6%. This implies that the project is expected to provide a return greater than the 6% discount rate, making it a potentially attractive investment.
In summary, the NPV of the project is $75,471.70. The positive NPV indicates that the project's IRR is greater than the 6% discount rate, suggesting that the project has the potential to generate returns higher than the required rate of return, making it a favorable investment.
Learn more about Net Present Value here :
https://brainly.com/question/32720837
#SPJ11
"
One of the intriguing details that Homer includes in Odysseus’ homecoming is the brief scene in which Odysseus recognizes his dog, Argos, as he approaches the palace (17:317-360). Consider this depiction on both a literal and symbolic level. What condition is the dog in? How do you think Odysseus feels seeing the dog in such condition? What does this encounter add to the plot and to our understanding of Odysseus’ character? In what ways is Argos the dog symbolic of Odysseus’s estate, his family, or his feelings about himself?"
One of the intriguing details that Homer includes in Odysseus’ homecoming is the brief scene in which Odysseus recognizes his dog, Argos, as he approaches the palace (17:317-360). The condition of the dog is a sorry sight. He is in a miserable state.
The scene, which is rich with significance on both literal and symbolic levels, highlights the dog's loyalty to his master, as well as Odysseus' ability to recognize the dog even in such condition. Odysseus's feeling at seeing Argos in such condition is mixed; he is moved to tears by the sight of his former hunting dog, who was once in the prime of his life and a valued companion. He also feels some guilt and sadness that Argos, like himself, is now an outcast, while the suitors live in comfort and luxury.
The encounter adds depth and complexity to the plot of the Odyssey and provides insights into Odysseus' character. It serves as a reminder of Odysseus's earlier life as a great warrior, as well as of his loyalty to those who have served him faithfully. The story's resolution is also impacted by the scene with the dog. It provides an emotional anchor that allows the audience to identify with Odysseus's plight and serves to emphasize the ultimate fate of the suitors and Odysseus's triumph over them.
Argos the dog is symbolic of Odysseus's estate, family, and feelings about himself. He represents Odysseus's former life of wealth and privilege and his memories of home. He is also a symbol of loyalty and the importance of having companions who will stand by you through thick and thin.
Know more about the Odysseus’ homecoming
https://brainly.com/question/2507197
#SPJ11
Question 1 : We discussed 4 types of cultural organizations in the Competing Values Framework model. Name and describe one of the culture types.
In the Competing Values Framework model, there are four types of cultural organizations. They are Clan culture, Adhocracy culture, Market culture, and Hierarchy culture.
The Hierarchy culture is an organizational culture type that places a strong emphasis on structure, control, and stability. Organizations with a hierarchy culture often have clear rules, procedures, and policies that guide decision-making and action. They tend to be bureaucratic and follow a clear chain of command, with each level having defined roles and responsibilities. Hierarchy cultures value efficiency, predictability, and stability.
The strengths of Hierarchy culture are that it provides clear structure and order within the organization. It ensures that everyone knows their roles and responsibilities and that decision-making is streamlined. This type of culture is efficient and predictable, which can be beneficial in environments where stability is crucial. However, its weaknesses are that it can be slow to adapt to change, can lead to a lack of creativity and innovation, and may not value individual contributions as much as other cultures.
To know more about Competing visit:
brainly.com/question/29307834
#SPJ11
How much money should a couple deposit every month for the next 40 years in order to provide an income of $10,000 every month ($120,000 yearly income) forever after the 40 yearly deposits? Assume an interest rate is 3% compounded every month?
PMT = Payment amount R = Periodic payment amount i = Interest rate per period n = Total number of periods PVIFA_i,n = Present value interest factor of an annuity Using the above formula. Then, we can divide this present value by the number of months in 40 years to get the monthly deposit required.
Substituting the given values in the formula: PMT = 10000R = 3%/12i = 3%/12 = 0.0025n = 40 * 12 = 480PVIFA_i,n = (1 - (1 + 0.0025)^-480) / 0.0025PVIFA_i,n = 276.4234.Now, we can use the formula for the present value of an annuity: P = PMT * PVIFA_i,nP = 10000 * 276.4234P = $2,764,234.02.
Therefore, the couple needs to deposit a total of $2,764,234.02 over 40 years to receive an income of $10,000 per month forever. The monthly deposit required is:P / n = 2,764,234.02 / 480 = $5,759.24. The couple should deposit $5,759.24 every month for the next 40 years.
To know more about Payment amount visit:-
https://brainly.com/question/18917281
#SPJ11
What are the two primary qualitative characteristics identified by the Financial() Accounting Standards Board's (FASB) conceptual framework? a. Relevance and faithful representation. b. Materiality and efficiency. c. Comparability and consistency. d. Costs and benefits. 8.Which of the following is considered cash for financial reporting purposes?() a. account receivable b. investment with maturity dates greater than three months. c. checks received from customers d. accounts payable 9. Which financial statement shows that a company's resources equal claims to those resources?() a. Income statement. b. Statement of stockholders' equity. c. Balance sheet. d. Statement of cash flows. 10. On May 5, Johnson Plumbing receives a phone call from a customer needing a new water heater and schedules a service visit for May 7. On May 7, Johnson installs the new water heater. The customer pays for services on May 10. According to the revenue recognition principle, on which date should Johnson record service revenue?() a. May 5 (date of phone call). b. May 7 (date of service). c. May 10 (date of cash receipt). d. Evenly over the three dates.
1. Qualitative characteristics identified by the Financial Accounting Standards Board (FASB) conceptual framework are a. Relevance and faithful representation. So , option a is the right choice.
2. Cash for financial reporting purposes is considered to be c. Checks received from customers. So, option c is the right choice.
3. The financial statement that shows a company's resources equal claims to those resources is c. Balance sheet. So, option c is the right choice.
4. According to the revenue recognition principle, service revenue should be recorded on b. May 7 (date of service). So, option b is the right choice.
1. The two primary qualitative characteristics identified by the Financial Accounting Standards Board (FASB) conceptual framework are a. Relevance and faithful representation. Relevance means that the financial information should be capable of influencing the economic decisions of users. Faithful representation means that the information should be complete, neutral, and free from error.
2. The item considered as cash for financial reporting purposes is c. Checks received from customers. Cash typically includes currency, coins, checks, money orders, and similar negotiable instruments.
3. The financial statement that shows a company's resources equal claims to those resources is c. Balance sheet. The balance sheet presents the financial position of a company at a specific point in time, showing its assets, liabilities, and shareholders' equity.
4. According to the revenue recognition principle, service revenue should be recorded on b. May 7 (date of service). The revenue recognition principle states that revenue should be recognized when it is earned and the company has substantially completed its performance obligations. In this case, Johnson Plumbing provided the service (installation of the water heater) on May 7, so that is the appropriate date to record the service revenue.
By considering the above explanations, the correct answers are: a. Relevance and faithful representation, c. Checks received from customers, c. Balance sheet, and b. May 7 (date of service).
The right answer is for (1) a. Relevance and faithful representation. (2) c. Checks received from customers , (3) c. Balance sheet (4) b. May 7 (date of service).
For more such question on financial accounting
https://brainly.com/question/30535617
#SPJ8
The complete question may be like:
1. What are the two primary qualitative characteristics identified by the Financial() Accounting Standards Board's (FASB) conceptual framework?
a. Relevance and faithful representation
b. Materiality and efficiency.
c. Comparability and consistency.
d. Costs and benefits.
2. Which of the following is considered cash for financial reporting purposes?()
a. account receivable
b. investment with maturity dates greater than three months
c. checks received from customer
d. accounts payable
3. Which financial statement shows that a company's resources equal claims to those resources?
a. Income statement.
b. Statement of stockholders' equity
c. Balance sheet.
d. Statement of cash flows.
4. On May 5, Johnson Plumbing receives a phone call from a customer needing a new water heater and schedules a service visit for May 7. On May 7, Johnson installs the new water heater. The customer pays for services on May 10. According to the revenue recognition principle, on which date should Johnson record service revenue?
a. May 5 (date of phone call)
b. May 7 (date of service)
c. May 10 (date of cash receipt).
d. Evenly over the three dates.
Directions: Please prepare journal entries for all transactions starting with March 1.
Peaceful Existence, Inc. is a consulting company established by Lola Guthrie. On March 1, the company was started with a $450,000 investment by the owner in exchange for common stock. During the month of March, the company engaged in the following transactions:
• Mar 2, the company purchased $30,650 of office supplies on account from Staples. The office supplies are expected to last one-year.
• Mar 3, performed a consulting job and billed the customer $90,000.
• Mar 4, the company paid $225,000 for a two-year insurance policy.
• Mar 5, the company received $50,000 cash in advance to perform a consulting job on Mar 25th
• Mar 5, purchased $65,000 of office equipment by paying $5,000 cash and signing a note payable for the balance. Straight-line depreciation is used for the equipment, and the equipment is expected to last 5 years with zero salvage value.
At the end of the month, the owner had the below adjustments:
• Mar 31, adjusted the office supplies account to reflect $25,000 of supplies on hand.
• Mar 31, adjusted the prepaid insurance account to reflect that one month’s of insurance had expired.
• Mar 31, adjusted the unearned revenue account to reflect that the unearned revenue received on Mar 5th had been earned.
• Mar 31, recorded one-month depreciation on the equipment.
• Mar 31, is a Thursday and the employees are paid on Friday. The owner has five employees who are each paid $300 per day for a 5-day work week.
In addition to the above adjusting journal entries, the company also recorded the following transactions:
• Mar 31, paid in full the amount due to Staples for the office supplies purchased on Mar 2.
• Mar 31, collected in full the amount due from the customer billed on Mar 3.
The following are the journal entries for the transactions and adjustments that occurred during the month of March for Peaceful Existence, Inc., a consulting company established by Lola Guthrie.
1. March 1: Owner's investment:
Cash $450,000
Common Stock $450,000
2. March 2: Purchase of office supplies on account from Staples:
Office Supplies (Asset) $30,650
Accounts Payable $30,650
3. March 3: Consulting job performed and billed to the customer:
Accounts Receivable $90,000
Consulting Revenue $90,000
4. March 4: Payment for a two-year insurance policy:
Prepaid Insurance (Asset) $225,000
Cash $225,000
5. March 5: Cash received in advance for a consulting job:
Cash $50,000
Unearned Revenue $50,000
6. March 5: Purchase of office equipment with cash and note payable:
Office Equipment (Asset) $65,000
Notes Payable $60,000
Cash $5,000
Learn more about journal entries here:
https://brainly.com/question/33438461
#SPJ11
Denman Ski and Cycles purchased 200 pairs of ski boots for $150 per pair. The regular rate of markup on selling price on the boots is 45%. The store's overhead is 16% of the selling price. During a clearance sale, the price was reduced to $235 per pair. a) What is the regular selling price? b) At the sale price, what was dollar amount of the markup? c) What was the profit or loss on each pair of boots at the sale price?
a) Regular selling priceLet's determine the regular selling price of ski boots. We can do this by using the following formula:Selling price = Cost price + Markup costLet's plug in the given values in the formula. Cost price is $150 per pair and the rate of markup on selling price is 45%. Markup is calculated on the selling price.
The store sells at 45% markup, which is equivalent to a 55% cost ratio.Cost ratio = 100% - 45% = 55%Therefore, the selling price can be calculated as:Selling price = $150 + (55% × $150)Selling price = $232.50Therefore, the regular selling price of ski boots is $232.50 per pair.b) Markup amountAt the sale price of $235, we need to calculate the dollar amount of the markup. The selling price at the time of the sale is $235 per pair.
The cost price of each pair is still $150 per pair, which is the same as when the store purchased the boots. Let's use the formula for markup percentage to calculate the percentage markup.Markup percentage = (Selling price - Cost price) / Cost price × 100Markup percentage = ($235 - $150) / $150 × 100Markup percentage = 56.67%Therefore, the dollar amount of markup can be calculated as:Dollar amount of markup = Markup percentage / 100 × Cost priceDollar amount of markup = 56.67% / 100 × $150Dollar amount of markup = $85.00Therefore, the dollar amount of markup at the sale price was $85.00.c)
To know more about Ski boots visit:-
https://brainly.com/question/33063185
#SPJ11
Discuss transportation economics and pricing in
logistic supply chain.
Transportation economics refers to the branch of economics that deals with the transportation sector's analysis and functioning. In the logistic supply chain, transportation plays a vital role, and it accounts for a significant portion of the logistics cost.
Transportation economics and pricing in the logistic supply chain have a direct impact on the overall performance of the supply chain. Here are some of the aspects of transportation economics and pricing in the logistic supply chain:
Transportation cost: Transportation costs account for a significant portion of the overall logistics cost. The transportation cost varies based on the mode of transportation and distance. The pricing of transportation services is based on the transportation cost, which includes the vehicle cost, fuel cost, and driver wages.
Transportation mode: The selection of the transportation mode is crucial in transportation economics. The mode of transportation depends on the nature of the goods and the distance. Road, rail, air, and water are some of the commonly used modes of transportation in the logistic supply chain.
Transportation infrastructure: The transportation infrastructure is a critical factor in transportation economics. The transportation infrastructure includes the road network, ports, airports, and railways. The transportation infrastructure's quality and availability directly affect transportation cost and time.
Pricing strategies: The pricing strategies in the logistic supply chain are influenced by various factors, including competition, transportation cost, distance, and mode of transportation. The pricing strategies may include flat rate pricing, distance-based pricing, weight-based pricing, and volume-based pricing.
Transportation economics and pricing play a crucial role in the logistic supply chain. The logistics service provider must adopt an efficient and cost-effective transportation strategy to improve the supply chain's overall performance.
Know more about Transportation economics here:
https://brainly.com/question/32973659
#SPJ8
Isabelle works as a procurement agent at Boeing, she is responsible for buying all the plastic parts for the 737 Max Aircraft. She logs onto SAP and monitors purchase orders. She follows up on the last PO she sent and she can identify the supplier's name and address: "Pexco, 2405 S 3rd Ave, Yakima, WA 98903". The supplier's name and it's address are example of this data:
Group of answer choices
Master data
Transactional
Organizational
Big data
The supplier's name and address, "Pexco, 2405 S 3rd Ave, Yakima, WA 98903," are an example of master data.
Master data refers to the key information that remains relatively stable and is essential for business operations. It includes data about customers, suppliers, products, and other important entities. In this case, the supplier's name (Pexco) and address (2405 S 3rd Ave, Yakima, WA 98903) are key pieces of information that identify the specific supplier and their location.
Master data is typically maintained in a centralized system, such as an enterprise resource planning (ERP) software like SAP. It serves as a foundation for various business processes, including procurement.
By having access to this master data, Isabelle can effectively monitor purchase orders, follow up on previous orders, and ensure the smooth flow of procurement activities.
Learn more about master data
brainly.com/question/30410132
#SPJ11
Suppose that Hyunju's nominal income rises by 5 percent and the consumer price index rises by 6 percent. Then, Hyunju's real income will change by percent.
Hyunju's real income will decrease by 0.94 percent. This means that even though her nominal income increased, the higher inflation rate.
To calculate the change in Hyunju's real income, we need to adjust her nominal income for the change in the consumer price index (CPI). The formula to calculate real income is:
Real Income = Nominal Income / CPI
In this case, Hyunju's nominal income increased by 5 percent, so her new nominal income is 105 percent (100 percent + 5 percent) of her initial income. The consumer price index increased by 6 percent, so the CPI value is 106 percent (100 percent + 6 percent) of its initial value.
Now we can calculate the change in Hyunju's real income:
Real Income Change = (New Nominal Income / New CPI) - 1
Real Income Change = (105% / 106%) - 1
Real Income Change = 0.9906 - 1
Real Income Change = -0.0094 or -0.94%
Hyunju's real income will decrease by 0.94 percent. This means that even though her nominal income increased, the higher inflation rate (as reflected in the CPI) eroded the purchasing power of her income.
learn more about consumer here: brainly.com/question/30132393
#SPJ11
Which of the following does NOT constitute an act of "investment" as economists use the term? A. The city park commission authorizes the construction of a new swimming pool. B. An individual buys 100 shares of stock at $30 a share and then sells the stock at a profit for $35 a share. C. A corporate lawyer attends a seminar on changes in the federal tax code. D. A grocery store increases its inventory of potato chips and soda before the Memorial Day weekend.
Option C is the correct answer. A corporate lawyer attends a seminar on changes in the federal tax code, does NOT constitute an act of "investment" as economists use the term.What is an investment?Investment is the process of using resources such as time, money, or effort to achieve a higher future rate of return than is presently available.
Investment refers to any activity that results in the production of a new asset or the appreciation of an existing asset. The following are examples of investment activities:
Buying a stock or bond in a company with the aim of earning dividends or capital gains.Loaning money to a business owner to help him expand his business.
Acquiring real estate with the intention of renting or selling it after it has appreciated in value.All of these activities have the potential to provide a rate of return that is greater than the current rate of return.
Therefore, they are considered investment activities. On the other hand, attending a seminar on tax changes is not an investment.
Therefore, Option C is the correct answer.
For more question on investment
https://brainly.com/question/29547577
#SPJ8
Question 3 (10 points): Term Structure and Cost of Capital Draw the current term structure of interest rates (as of today). Label both the axes and the points on the curve. You can get this information from Bloomberg.com. Also include the term structure in early 1980s and early 1990s. You can get this information from the web or from your book. Explain in less than 10 lines - • What does the current term structure, as you have graphed, imply for the future path of future interest rates? What causes the future change in rates in your opinion? Why was the term structure different in the 1980s? Why is the term structure important for valuing financial asset prices?
The term structure of interest rates provides insights into market expectations about future interest rate movements. Factors such as monetary policy, inflation, and economic conditions influence the future change in rates. The term structure is important for valuing financial assets by providing a basis for discounting future cash flows.
The term structure of interest rates represents the relationship between the interest rates and the time to maturity of fixed-income securities. Typically, the term structure is graphed as a yield curve, with the yield on the vertical axis and the time to maturity on the horizontal axis.
The shape of the yield curve can provide insights into market expectations about future interest rate movements. A normal yield curve slopes upward, indicating that long-term interest rates are higher than short-term rates. This suggests that market participants expect interest rates to increase in the future.
The future change in interest rates is influenced by various factors, including monetary policy decisions by central banks, inflation expectations, economic growth prospects, geopolitical events, and market sentiment.
Changes in these factors can lead to shifts in the yield curve, indicating changes in market expectations regarding future interest rates.
In the 1980s, the term structure of interest rates was significantly different due to high inflation and tight monetary policy measures implemented to combat inflation. This led to a steep yield curve with high long-term interest rates.
The term structure is important for valuing financial asset prices because it provides a benchmark for discounting future cash flows. The yield curve helps determine the appropriate discount rate for different maturities, influencing the valuation of bonds, stocks, and other financial assets.
Changes in the term structure can affect the relative attractiveness of different investments and impact asset prices.
For more such question on interest. visit :
https://brainly.com/question/29415701
#SPJ8
chris, a salesperson working for broker janet, is assigned to work on a listing that started on january 3. the listing is a 90 day exclusive right-to-sell agreement. on march 1, chris is killed in an automobile accident. what is the status of the listing agreement? select one: a. the listing becomes an open listing. b. the listing terminates by operation of law. c. the listing remains valid. d. the seller may now list the property with another broker.
The seller must continue to honor the exclusive right-to-sell agreement and work with another salesperson within the same brokerage to sell the property. The correct answer is option B: the listing terminates by operation of law.
The status of the listing agreement is that it terminates by operation of law. When a salesperson who is working on a listing agreement is killed, the agreement is automatically terminated.
Even though Chris is unfortunately killed in an automobile accident on March 1, the listing agreement itself is not terminated.
The agreement is a binding contract between the seller and the broker, not the individual salesperson. Therefore, the death of Chris does not automatically terminate the listing.
Instead, the responsibility to fulfill the terms of the listing agreement would typically be passed on to another salesperson within the same brokerage.
The seller would still be obligated to honor the exclusive right-to-sell agreement and cannot list the property with another broker during the 90-day period.
Since the salesperson is no longer able to fulfill their duties under the agreement, the seller may now list the property with another broker.
To know more about seller visit:
https://brainly.com/question/32747958
#SPJ11
Question 6 Write up the following transactions in the books of P Hewitt: 20X8 March 1 Started in business with cash RM8,500. Cash 2 Bought goods on credit from W Young Purchases RM420. 4 Paid rent by cash RM210. Rent Expenses 7 Bank Account Paid RM6,000 of the cash of the business into a bank account. 8 Sold goods on credit to D Unbar RM192. Accounts Receivable 9 Bought stationery RM25 paying by cheque. Cash sales RM81. Stationery Expenses Cash 10 11 Goods returned by us to W Young RM54. Accounts Payable Accounts Receivable 12 Sold goods on credit to J Harper RM212. 14 Paid for repairs to the building by cash RM78. Repair Expenses 15 D Unbar returned goods to us RM22. Sales Return & Allowances 17 Paid W Young by cheque RM366. Account Payable 19 Cash purchases RM470. Purchases 22 Bought a van paying by cheque RM3,850. Vehicle 24 Paid motor expenses in cash RM62 Motor Expenses 27 Bought fixtures RM840 on credit from B Fixture Coal. Debited Credited Owner's Capital Accounts Payable Cash Cash Sales Bank Sales Purchases Return & Allowances Sales Cash Accounts Receivable Bank Cash Bank Cash Accounts Payable
The debits and credits will reflect the increases and decreases in each account.
To record the transactions in the books of P Hewitt, we will write up the appropriate journal entries. Below is the journal entry for each transaction:
March 1:
Debit: Cash (RM8,500)
Credit: Owner's Capital (RM8,500)
March 2:
Debit: Purchases (RM420)
Credit: Accounts Payable - W Young (RM420)
March 4:
Debit: Rent Expenses (RM210)
Credit: Cash (RM210)
March 7:
Debit: Bank Account (RM6,000)
Credit: Cash (RM6,000)
March 8:
Debit: Accounts Receivable - D Unbar (RM192)
Credit: Sales (RM192)
March 9:
Debit: Stationery Expenses (RM25)
Credit: Cash (RM25)
Debit: Cash (RM81)
Credit: Sales (RM81)
March 10:
No transaction recorded.
March 11:
Debit: Accounts Payable - W Young (RM54)
Credit: Accounts Receivable (RM54)
March 12:
Debit: Accounts Receivable - J Harper (RM212)
Credit: Sales (RM212)
March 14:
Debit: Repair Expenses (RM78)
Credit: Cash (RM78)
March 15:
Debit: Sales Return & Allowances (RM22)
Credit: Accounts Receivable - D Unbar (RM22)
March 17:
Debit: Accounts Payable - W Young (RM366)
Credit: Bank (RM366)
March 19:
Debit: Purchases (RM470)
Credit: Cash (RM470)
March 22:
Debit: Vehicle (RM3,850)
Credit: Bank (RM3,850)
March 24:
Debit: Motor Expenses (RM62)
Credit: Cash (RM62)
March 27:
Debit: Fixtures (RM840)
Credit: Accounts Payable - B Fixture Coal (RM840)
After recording all the transactions, you can prepare the ledger accounts based on the journal entries. The debits and credits will reflect the increases and decreases in each account. Ensure that the debits equal the credits for each transaction and maintain the accounting equation (Assets = Liabilities + Owner's Equity) throughout the process.
for more such question on debits visit
https://brainly.com/question/28390335
#SPJ8
1) The Heating Division of Kobe International produces a heating element that it sells to its customers for $47 per unit. Its variable cost per unit is $20, and its fixed cost per unit is $5. Top management of Kobe International would like the Heating Division to transfer 14,700 heating units to another division within the company at a price of $26. The Heating Division is operating at full capacity. What is the minimum transfer price that the Heating Division should accept?
Minimum transfer price $ _____
2)
The Heating Division of Kobe International produces a heating element that it sells to its customers for $38 per unit. Its variable cost per unit is $20, and its fixed cost per unit is $5. Top management of Kobe International would like the Heating Division to transfer 14,500 heating units to another division within the company at a price of $25. Assume that the Heating Division has sufficient excess capacity to provide the 14,500 heating units to the other division. What is the minimum transfer price that the Heating Division should accept?
Minimum transfer price $ _____
The Heating Division should accept a minimum transfer price of $20 per unit and the Heating Division should accept a minimum transfer price of $33 per unit to cover both the variable cost and a portion of the fixed cost when there is excess capacity available.
1) The minimum transfer price that the Heating Division should accept when operating at full capacity is equal to its variable cost per unit. This is because when the division is already utilizing all of its resources and is unable to produce additional units, there is no opportunity cost associated with the transfer.
Given information:
Selling price per unit = $47
Variable cost per unit = $20
Fixed cost per unit = $5
Desired transfer quantity = 14,700 units
Since the division is operating at full capacity, the fixed cost per unit is not relevant for the minimum transfer price calculation. The transfer price only needs to cover the variable cost per unit.
Minimum transfer price = Variable cost per unit
Minimum transfer price = $20
Therefore, the Heating Division should accept a minimum transfer price of $20 per unit.
2)In this scenario, the Heating Division has excess capacity to provide the 14,500 heating units to the other division. The minimum transfer price should cover both the variable cost per unit and a portion of the fixed cost per unit.
Given information:
Selling price per unit = $38
Variable cost per unit = $20
Fixed cost per unit = $5
Desired transfer quantity = 14,500 units
To determine the minimum transfer price, we need to cover the variable cost per unit and allocate a portion of the fixed cost to the transfer.
First, we calculate the total fixed cost associated with the desired transfer quantity:
Total fixed cost = Fixed cost per unit * Desired transfer quantity
Total fixed cost = $5 * 14,500
Total fixed cost = $72,500
Next, we need to determine the desired contribution margin per unit, which will cover the fixed cost:
Desired contribution margin per unit = (Selling price per unit - Variable cost per unit) - (Fixed cost per unit / Desired transfer quantity)
Desired contribution margin per unit = ($38 - $20) - ($72,500 / 14,500)
Desired contribution margin per unit = $18 - $5
Desired contribution margin per unit = $13
Finally, we can calculate the minimum transfer price by adding the variable cost per unit to the desired contribution margin per unit:
Minimum transfer price = Variable cost per unit + Desired contribution margin per unit
Minimum transfer price = $20 + $13
Minimum transfer price = $33
To know more about transfer price, visit:
https://brainly.com/question/14085963
#SPJ11