Business, 11.11.2020 17:50 isabelperez063
Fyodor Corporation has a Parts Division that does work for other Divisions in the company as well as for outside customers. The company's Machine Division has asked the Parts Division to provide it with 7,600 special parts each year. The special parts would require $29 per unit in variable production costs. The Machine Division has a bid from an outside supplier for the special parts at $42.00 per unit. In order to have time and space to produce the special part, the Parts Division would have to cut back production of another part-the QR4 that it presently is producing. The QR4 sells for $56 per unit, and requires $28 per unit in variable production costs. Packaging and shipping costs of the QR4 are $2 per unit. Packaging and shipping costs for the new special part would be only $0.50 per unit. The Parts Division is now producing and selling 38,000 units of the QR4 each year. Production and sales of the QR4 would drop by 5% if the new special part is produced for the Machine Division.
Required:
What is the range of transfer prices within which both the Divisions' profits would increase as a result of agreeing to the transfer of 8,400 special parts per year from the Parts Division to the Machine Division?
Answers: 2
Other questions on the subject: Business
Business, 22.06.2019 10:10, cuthbertson157
conquest, inc. produces a special kind of light-weight, recreational vehicle that has a unique design. it allows the company to follow a cost-plus pricing strategy. it has $9,000,000 of average assets, and the desired profit is a 10% return on assets. assume all products produced are sold. additional data are as follows: sales volume 1000 units per year; variable costs $1000 per unit; fixed costs $4,000,000 per year; using the cost-plus pricing approach, what should be the sales price per unit?
Answers: 2
Business, 22.06.2019 22:00, toxsicity
Which of the following statements about nonverbal communication is most accurate? a. the meanings of some gestures can vary among cultures b. the way an e-mail, letter, memo, or report looks can have either a positive or a negative effect on a receiver c. the manner in which we structure and use time can reveal our personalities and attitudes d. all statements are accurate
Answers: 1
Business, 22.06.2019 22:40, aupein
Southeastern oklahoma state university's business program has the facilities and faculty to handle an enrollment of 2,000 new students per semester. however, in an effort to limit class sizes to a "reasonable" level (under 200 generally), southeastern's dean, holly lutze, placed a ceiling on enrollment of 1,600 new students. although there was ample demand for business courses last semester, conflicting schedules allowed only 1,440 new students to take business courses. the utilization rate for southeastern=%the efficiency rate for southeastern=%
Answers: 3
Business, 23.06.2019 00:30, landofliam30
Suppose the government decides to issue a new savings bond that is guaranteed to double in value if you hold it for 20 years. assume you purchase a bond that costs $25. a. what is the exact rate of return you would earn if you held the bond for 20 years until it doubled in value? (do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e. g., 32.16.) b. if you purchased the bond for $25 in 2017 at the then current interest rate of .27 percent year, how much would the bond be worth in 2027? (do not round intermediate calculations and round your answer to 2 decimal places, e. g., 32.16.) c. in 2027, instead of cashing in the bond for its then current value, you decide to hold the bond until it doubles in face value in 2037. what annual rate of return will you earn over the last 10 years? (do not
Answers: 3
You know the right answer?
Fyodor Corporation has a Parts Division that does work for other Divisions in the company as well as...
Questions in other subjects:
Advanced Placement (AP), 15.12.2021 03:00
English, 15.12.2021 03:00
Mathematics, 15.12.2021 03:00
