Business, 30.07.2021 04:10, kylebenson

The Lumber Division of Paul Bunyon Homes Inc. produces and sells lumber that can be sold to outside customers or within the company to the Construction Division. The following data have been gathered for the coming period: Lumber Division:
Capacity200,000 board feet
Price per board foot$2.50
Variable production cost per bd. ft.$1.25
Variable selling cost per bd. ft.$0.50
Construction Division:
Board feet needed60,000
Outside price paid per bd. ft.$2.00
If the Lumber Division sells to the Construction Division, $0.35 per board foot can be saved in shipping costs.
If current outside sales are 130,000 board feet, what is the minimum transfer price that the Lumber Division could accept?
a. $1.25
b. $1.40
c. $1.75
d. $2.50

Answers: 2

Show answers

Other questions on the subject: Business

Business, 21.06.2019 17:10, hartzpeyton136

Which term refers to the amount of products generated divided by the inputs necessary to create that output? a. performance b. industry ranking c. productivity d. organizational performance e. organizational effectiveness

Answers: 1

continue

Business, 22.06.2019 13:20, ooEVAoo

Suppose farmer lane grows and sells cotton in a perfectly competitive industry. the market price of cotton is $1.64 per kilogram, and his marginal cost of production is $1.44 per kilogram, which increases with output. assume farmer lane is currently earning a profit. can farmer lane do anything to increase his profit in the short run? farmer lane: a. cannot do anything to increase his profit. b. may or may not be able to increase his profit. c. can increase his profit by raising his price. d. can increase his profit by producing more output. e. can increase his profit by shutting down.

Answers: 1

continue

Business, 22.06.2019 17:00, vistagallosky

Which represents a surplus in the market? a market price equals equilibrium price. b quantity supplied is greater than quantity demanded. c market price is less than equilibrium price. d quantity supplied equals quantity demanded.

Answers: 2

continue

Business, 22.06.2019 19:00, EllaSue

Lucy is catering an important luncheon and wants to make sure her bisque has the perfect consistency. for her bisque to turn out right, it should have the consistency of a. cold heavy cream. b. warm milk. c. foie gras. d. thick oatmeal.

Answers: 3

continue

Do you know the correct answer?

The Lumber Division of Paul Bunyon Homes Inc. produces and sells lumber that can be sold to outside...