Answer:
The Parts Division of Nydron Corporation
The Transfer Price for this transaction would lie between $16.85 and $17.00.
Relevant costs of making Part Y6P per unit is computed as the variable or marginal costs:
Sales Price to outside companies = $17
Buying Price from outside supplier = $16.85
Marginal Costs:
Direct Materials $7
Direct Labor $3
Var. Mfg O/H $4.50
Total Variable = $14.50
Fixed Costs = $1.20
Total costs = $15.20
Explanation:
This is a Transfer Price decision, in a buy or make situation. In making such decision, management of Nydron Corporation should concentrate on the relevant costs and the lowest and higher transfer prices. The costs that are relevant in this decision are those that can be avoided, called avoidable costs. They make the difference in making choices.
Since the relevant costs equal $14.50 (without the fixed cost of $1.20, which must be incurred irrespective of the decision taken) and the part can be sold for $17.00 to outside buyers, the transfer price would lie within the relevant manufacturing cost and the outside selling price. However, since the part can be bought from outside at $16.85, this becomes the lowest transfer price and $17.00 the highest transfer price.
Transfer price is the price that a division can sell its products or services to another division of the company and between subsidiaries and parent companies. Transfer pricing is an accounting and taxation practice that enables prices to be set for transactions done internally within businesses and between subsidiaries that operate under common control or ownership. The transfer pricing practice extends to cross-border transactions as well as domestic ones, and have taxation implications.
<span>Unattainable points are outside the PPF. The PPF refers to the Production Possibilities Frontier. This is set by the economic standing of a country and a country is not able to perform and produce outside of their set PPF. Due to this, all unattainable points are located outside of the PPF. </span>
Answer:
The main function of a terminal is to handle and transship freight or passengers since modes are physically separated. They have a nominal capacity which is related to the amount of land they occupy and their level of technological, labor and managerial intensity.
Explanation:
Answer:
Answer A = $9,000
Answer B = $6,400
Answer C = $7,632
Answer D = $54,000
Answer E = $71,063
Explanation:
[ find attachments for complete solutions]
Note: Complete question is attached to the attachment section
P1 = $27
P0 = $23
To solve:
Capital gain rate = (P1 - P0)/P0
Capital gain rate = ($27.00 - $23.00)/$23.00
Capital gain rate = $4/$23
Capital gain rate = 0.1739
Capital gain rate = (0.1739)(100)
Capital gain rate = 17.39%
