The Heating Division of Kobe International produces a heating element that it sells to its customers for $45 per unit. Its variable cost per unit is $25, and its fixed cost per unit is $10. Top management of Kobe International would like the Heating Division to transfer 15,000 heating units to another division within the company at a price of $29. Assume that the Heating Division has sufficient excess capacity to provide the 15,000 heating units to the other division. What is the minimum transfer price that the Heating Division should accept?
Answers (1)
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “The Heating Division of Kobe International produces a heating element that it sells to its customers for $45 per unit. Its variable cost ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
Alpha Company uses the direct write-off method of recording uncollectible accounts. On August 15, 2016, Yankee Zulu filed for bankruptcy and informed Alpha that he would be unable to pay $550 owed to Alpha.
Answers (1)
a retirement plan guarantees to pay you a fixed amount for 25 years. at the time of retirement, you will have $100,000 to your credit in the plan. the plan anticipates earning 7% interest annually over the period you receive benefits.
Answers (1)
What effect would a bumper crop most likely have on the price of that crop? ?
Answers (1)
Benjamin Company had the following results of operations for the past year: Sales (16,000 units at $10) $ 160,000 Direct materials and direct labor $ 96,000 Overhead (20% variable) 16,000 Selling and administrative expenses (all fixed) 32,000
Answers (1)
As a result of the increase in malpractice insurance premiums, the concept of defensive medicine has been introduced which means that providers often order more tests and provide more services than necessary to protect themselves from malpractice
Answers (1)
New Questions in Business
In many states, the minimum amount that stockholders must contribute to the corporation, and which is intended to protect the creditors of the corporation, is called the:
Answers (1)
Other things being equal, the monopolist will hire the same number of workers as a perfectly competitive industry would. hire fewer workers than if the industry were perfectly competitive.
Answers (1)
Which of the following statements is true about using fonts in business documents? A. Sans serif fonts, such as Arial, are best in business letters and emails. B. Use as many different types of fonts in a business letter as you can. C.
Answers (1)
In creating the Wii, how did Nintendo ensure a supply of complements that would motivate customers to adopt its new video game format? a. Nintendo made only a select number of games to run exclusively on the Wii system. b.
Answers (1)
Suppose that B2B, Inc., has a capital structure of 35 percent equity, 16 percent preferred stock, and 49 percent debt. Assume the before-tax component costs of equity, preferred stock, and debt are 14.5 percent, 11.0 percent, and 9.
Answers (1)