Transfer Pricing Aulman Inc. has a number of divisions including a Furniture Division and a Motel Division. The Motel Division owns and operates a line of budget motels located along major highways. Each year, the Motel Division purchases furniture for the motel rooms. Currently, it purchases a basic dresser from an outside supplier for $60. The manager of the Furniture Division has approached the manager of the Motel Division about selling dressers to the Motel Division. The full product cost of a dresser is $29. While the Furniture Division has been operating at capacity (50,000 dressers per year) and selling them for $60 each, it expects to produce and sell only 40,000 dressers for $60 each next year. The Furniture Division incurs variable costs of $15 per dresser. The Motel Division needs 10,000 dressers per year; the Furniture Division can make up to 50,000 dressers per year. The company policy is that all transfer prices are negotiated by the divisions involved. Required: 1. What is the maximum transfer price? $ Which division sets it? 2. What is the minimum transfer price? $ Which division sets it? 3. Suppose that the two divisions agree on a transfer price of $31. What is the benefit for the Furniture Division? For the Motel Division? For Aulman Inc. as a whole? Benefit to Furniture Division $ Benefit to Motel Division $ Benefit to company $ Check My Work3 more Check My Work uses remaining. Previous
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Answer:1. Maximum transfer price is $60 and it's to be set by the Motel division.
This is the maximum price they will need to get it in the market if they are not buying in-house and it needs to be set by them because it determines the maximum profit it can make from the transaction.
2. The minimum transfer price is $29 and it's to be set by the Furniture division.
This is the production cost and it's still profitable since it has meet his fixed cost at 40,000 unit and the variable cost is $15. The Furniture set the price because it determines the maximum profit it makes from the transaction.
3. Benefit to Motley division is additional profit of $16 per unit for 10,000 units ($31-$15)
Benefit to Furniture division is a reduction in cost of $29 per units on 10000 unit ($60-31)
Benefit to company is the combination of the benefits from both Motly and Furniture division.
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On January 1, Year 1, Chaco Company sold $300,000 of 10% twenty-year bonds. Interest is payable semiannually on June 30 and December 31. The bonds were issued for $359,378, priced to yield 8%. What is the amount of effective interest expense that Chaco will record for the six months ended June 30, Year 1
CBA Inc has 400,000 shares outstanding with a $5 par value. The shares were issued for $12. The stock is currently selling for $34. CBA has $5,000,000 in retained earnings and has declared a stock dividend that will increase the number of outstanding shares by 6%. How many shares will be outstanding after the stock dividend?
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Matt and Claire go into an interview for the same position.This type of interview is called Unstructured interview.
What is the term Unstructured Interview about?
Unstructured interview is defined as one in which the questions asked are not prearranged. Rather they are spontaneous and questions to be asked are formulated during the course of the interview.
On the other structured interview is when questions are prearranged and candidates are asked the same questions.
Learn more about Unstructured Interview, refer to the link:
Answer:
Unstructured interview
Explanation:
Unstructured interview is defined as one in which the questions asked are not prearranged. Rather they are spontaneous and questions to be asked are formulated during the course of the interview.
On the other structured interview is when questions are prearranged and candidates are asked the same questions.
So when Matt and Claire go into an interview for the same position and they get asked very different questions depending on how the interview is going, they are answering unstructured interview questions.
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it's called bankrupt
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Answer:researchers should use caution when accessing information from Wikipedia, online forums and blogs.
In conducting research for homework or an academic paper, you are basically conducting a search for facts: little tidbits of truth that you will assemble and arrange in an organized fashion to make an original point or claim. Your responsibility as a researcher is to understand the difference between fact and fiction, as well as the difference between fact and opinion.
When beginning your next assignment that requires sources, consider the credibility of those sources before including them in your final project.
Here are some common sources to avoid; each of these may include opinions and works of fiction disguised as facts.
Blogs
As you know, anyone can publish a blog on the Internet. The problem with using a blog as a research source is there no way to know the credentials of many bloggers or to get an understanding of the writer’s level of expertise.
People often create blogs to give themselves a forum to express their views and opinions. And many of these people consult less than reliable sources to form their beliefs. You could use a blog for a quote, but never use a blog as a serious source of facts for a research paper.
Wikipedia is not a reliable source. Wikipedia can be edited by anyone at any time. This means that any information it contains at any particular time could be vandalism, a work in progress, or just plain wrong. ... Wikipedia generally uses reliable secondary sources, which vet data from primary sources.
Same also goes with online forum
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The tariff has resulted in a net drop of $80 million in combined surplus between consumers and producers, but a $60 million increase in government income, which is less than the net decrease in combined surplus between consumers and producers.This means that the tariff policy is not helpful for the welfare of the United States, and hence the supplied statement is FALSE.
What are the increase and decreases of consumer and producer surplus?
Prior to technological development, demand was 1000 units, while supply was 400. This means there are 600 units of imports.
The globe price drops by $100 as a result of technical improvement. Area CEDG is responsible for the increase in consumer surplus.
The decrease in producer surplus is given by area CEFG in image format
As a result of the lower world price, the consumer surplus rises $110,000, or $110 million; the producer surplus falls $30,000, or $30 million, and the total surplus raises $80 million.
The price will return to its original level if the government imposes a $100 tariff on imported televisions.
Imports will be reduced to 600 units, as well. Both the consumer and producer surpluses will return to their previous levels. A total of $60 million will be raised by the government.
For more information about consumers and producers, refer below
Answer
The answer and procedures of the exercise are attached in the images below.
Explanation
Please consider the data provided by the exercise. If you have any question please write me back. All the exercises are solved in a single sheet with the formulas indications.
b. Using a deerskin as money may not be as widely accepted as using paper money.
c. Using a deerskin as money cannot fulfill the key functions of money: a medium of exchange, a unit of account, a store of value, and a standard of deferred payment.
d. A and b only.
e. All of the above?
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I guess the correct answers are A and B only
Using a deerskin as money may not be as widely accepted as using paper money.
Using a deerskin as money incurs a much larger transactions cost because it is bigger and heavier than paper money.
A paymеnt systеm is any systеm usеd tο sеttlе financial transactiοns thrοugh thе transfеr οf mοnеtary valuе, and includеs thе institutiοns, instrumеnts, pеοplе, rulеs, prοcеdurеs, standards, and tеchnοlοgiеs that makе such an еxchangе pοssiblе.
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The cars will wait an average of 1.67 hours before being served at routine repairs while they'll wait an average of 3 hours before being served at major repairs.
From the information given, at the routine repair hoist, 5 people waiting on average and the cars are processed at a rate of 3 per hour, therefore the flow time (T) will be:
= I/R = 5/3 = 1.67 hours.
Also, at the major repair hoist, 3 people wait on average and the cars are processed at a rate of 1 per hour. Therefore, the Flow time (T) will be:
= I/R = 3/1 = 3 hours.
Read related link on:
Answer:
The Cars wait an average of 1.67 hours before being served at routine repairs.
The Cars wait an average of 3 hours before being served at major repairs.
Explanation:
At the routine repair hoist, 5 people waiting on average hence the Inventory (I) = 5 cars. The cars are processed at a rate of 3 per hour, hence the Throughput (R) = 3 cars per hour.
Therefore the Flow time (T) = I/R = 5/3 = 1.67 hours.
The Cars wait an average of 1.67 hours before being served at routine repairs.
At the major repair hoist, 3 people waiting on average hence the Inventory (I) = 3 cars. The cars are processed at a rate of 1 per hour, hence the Throughput (R) = 1 cars per hour.
Therefore the Flow time (T) = I/R = 3/1 = 3 hours.
The Cars wait an average of 3 hours before being served at major repairs.