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jeka57 [31]
2 years ago
9

Decision on Transfer Pricing Materials used by the Instrument Division of Ziegler Inc. are currently purchased from outside supp

liers at a cost of $1,350 per unit. However, the same materials are available from the Components Division. The Components Division has unused capacity and can produce the materials needed by the Instrument Division at a variable cost of $900 per unit. Assume that a transfer price of $1,200 has been established and that 75,000 units of materials are transferred, with no reduction in the Components Division's current sales. a. How much would Ziegler Inc.'s total operating income increase?
Business
1 answer:
qwelly [4]2 years ago
4 0

Answer:

total operating income increase $33.750.000

Explanation:

a. How much would Ziegler Inc.'s total operating income increase?

Consider the following formula

Units * (Cost of purchased from outside supplier - Variable cost)

75000 * ($1350 - $900) = $33750000

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A

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Habib withdrew $100,000 from his bank account paying 5% interest to purchase equipment for his construction company. If Habib ea
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Answer:

$5,000

Explanation:

Given that,

Accounting profit = $10,000

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The economic profit is calculated by subtracting implicit costs and explicit costs from the total revenue.

Accounting profit is determined by subtracting explicit costs from the total revenue.

Accounting profit = Total revenue - Explicit costs

Economic profit:

= (Total revenue - Explicit costs) - Implicit costs

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2 years ago
After assessing the market growth potential and market competitiveness in Mexico for his company's baby products, Harold wanted
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Answer:

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<u>Explanation: </u>

Harold would, first of all, find out the ease in accessing the market. If he finds that it is easy to access the market or target the consumers than he will develop distribution channels. Distribution channels take lots of time and effort.

Than Harold will determine the brand familiarity which means he will make the consumers familiar with his company's baby products. Brand familiarity affects the consumer's information about the product.

5 0
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You learn that the Volonian government has canceled the trade licenses of several firms in the e-learning market in the past due
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Answer:

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Explanation:

By getting the Government agent(s) or authority in the development and shaping of contents of the software, you are not only creating harmony with the local government but also ensuring that the agent helps scrutinizing the content of the software and also ensuring that the software does not contain any content that is objectionable to the government and this measure will definitely help Gerlach Publishing acquire a trade license.

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2 years ago
At a time when demand for ready-to-eat cereal was stagnant, a spokesperson for the cereal maker Kellogg’s was quoted as saying,
larisa86 [58]

Answer:

for interest rates equal to or lower than 200%, the firms will use trigger strategies to support the collusive level of advertising

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Using the below expression to determine the range of interest rates could these firms use trigger strategies to support the collusive level of advertising; we have:

\frac{current \ period's \ profit \ of \ the \ cheating \ firm \ - \  firm's \  profit \  in \ each \ period \ under \ collision  }{ firm's \ profit \ in \  each \ period \ under \ collision \ - \ profit \ in  \ each \ subsequent \ period \ of \ cheating \ firm  } \leq \frac{1}{i}

where;

the \ current \ period's \ profit \ of \ the \ cheating \ firm \ = \ 49

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\ profit \ in  \ each \ subsequent \ period \ of \ cheating \ firm  } = \ 1

Then :

= \frac{49-9}{9-1} \leq \frac{1}{i}

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Thus; for interest rates equal to or lower than 200%, the firms will use trigger strategies to support the collusive level of advertising

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