Business, 28.05.2021 18:20, mathman783
A company has two divisions, Softwoods and Hardwoods, each operating as a profit center. The Softwood Division charges the Hardwood Division $35 per unit for each unit transferred to the Hardwood Division. Other data for the Softwood Division are as follows:
Variable Cost per unit $ 30
Fixed Costs $ 10,000
Annual Sales to the Hardwood Division 5,000 units
Annual Sales to Outsiders 50,000 units
The Softwood Division is planning to raise its transfer price to $50 per unit. The Hardwood Division can purchase units at $40 per unit from outsiders but doing so would idle the Softwood Division's facilities (now committed to producing units for the Hardwood Division). The Softwood Division cannot increase its sales to outsiders. From the perspective of the company as a whole, from who should the Hardwood Division acquire the units, assuming the Hardwood Division's market is unaffected?
A. Outside vendors.
B. The Softwood Division, but only until fixed costs are covered, then should purchase from outside vendors.
C. The Softwood Division, but only at the variable cost per unit.
D. The Softwood Division, in spite of the increased transfer price.
Answers: 1
Business, 22.06.2019 08:30, Naomi7021
Conor is 21 years old and just started working after college. he has opened a retirement account that pays 2.5% interest compounded monthly. he plans on making monthly deposits of $200. how much will he have in the account when he reaches 591 years of age?
Answers: 2
Business, 22.06.2019 12:40, abilovessoftball
Which of the following tasks would be a line cook's main responsibility? oa. frying french fries ob. chopping onions oc. taking inventory of stocked dry goods od. paying invoices
Answers: 2
Business, 22.06.2019 15:10, GreenHerbz206
Paddock pools constructed a swimming pool and deck for the jensens' home. paddock installed the wrong trim on the pool. it would cost $2800 to change the trim-one-fifth of the total cost of the pool. the jensens refuse to pay anything for the pool. the paddock's best defense is: (a) duress (b) substanial performance (c)mistake (d) failure of conditions
Answers: 3
A company has two divisions, Softwoods and Hardwoods, each operating as a profit center. The Softwoo...
History, 26.04.2021 23:00
English, 26.04.2021 23:00
History, 26.04.2021 23:00
Mathematics, 26.04.2021 23:00
Mathematics, 26.04.2021 23:00
Mathematics, 26.04.2021 23:00