Item 10 item 10 babcock company manufactures fast-baking ovens in the united states at a production cost of $500 per unit and sells them to uncontrolled distributors in the united states and a wholly owned sales subsidiary in canada. babcock’s u. s. distributors sell the ovens to restaurants at a price of $1,000, and its canadian subsidiary sells the ovens at a price of $1,100. other distributors of ovens to restaurants in canada normally earn a gross profit equal to 25 percent of selling price. babcock’s main competitor in the united states sells fast-baking ovens at an average 50 percent markup on cost. babcock’s canadian sales subsidiary incurs operating costs, other than cost of goods sold, that average $250 per oven sold. the average operating profit margin earned by canadian distributors of fast-baking ovens is 5 percent. which of the following would be an acceptable transfer price under the comparable profits method?

In 2007, americans smoked 19.2 billion packs of cigarettes. they paid an average retail price of $4.50 per pack. a. given that the elasticity of supply is 0.50.5 and the elasticity of demand is negative 0.4−0.4, derive linear demand and supply curves for cigarettes. the demand equation is qdequals=nothingplus+nothing times ×p and the supply equation is qsequals=nothingplus+nothing times ×p.

What preforms the best over the long term? a) bonds b) mutual funds c) stocks d) certificate of deposit

1tanner invested $135,000 cash along with office equipment valued at $32,400 in the company in exchange for common stock. 2 the company prepaid $7,200 cash for 12 months’ rent for office space. (hint: debit prepaid rent for $7,200.) 3 the company made credit purchases for $16,200 in office equipment and $3,240 in office supplies. payment is due within 10 days. 6 the company completed services for a client and immediately received $2,000 cash. 9 the company completed a $10,800 project for a client, who must pay within 30 days. 13 the company paid $19,440 cash to settle the account payable created on april 3. 19 the company paid $6,000 cash for the premium on a 12-month insurance policy. (hint: debit prepaid insurance for $6,000.) 22 the company received $8,640 cash as partial payment for the work completed on april 9. 25 the company completed work for another client for $2,640 on credit. 28 the company paid $6,200 cash in dividends. 29 the company purchased $1,080 of additional office supplies on credit. 30 the company paid $700 cash for this month’s utility bill. prepare general journal entries to record these transactions. 2. post the journal entries from part 1 to the ledger accounts.