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The minimum acceptable transfer price for a division with excess capacity would be the variable cost per unit, which in this case is 8. This is because the division has excess capacity and is able to produce the goods at a lower cost than the selling price, so it would make sense to transfer the goods to another division or sell them to an external customer at a price that is at least equal to the variable cost per unit.
If the division were to transfer the goods to another division or sell them to an external customer at a price that is lower than the variable cost per unit, it would not cover its variable costs and would be operating at a loss. On the other hand, if the division were to transfer the goods to another division or sell them to an external customer at a price that is higher than the variable cost per unit, it would be able to cover its variable costs and potentially earn a profit.
It's worth noting that the fixed costs of the division are not relevant to the minimum acceptable transfer price, as these costs have already been incurred and cannot be avoided. The division would need to consider the fixed costs when determining its overall profitability, but they do not affect the minimum acceptable transfer price for the goods.
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What else can I help you with?
What fees does Western Union charge?
"Western Union charges a variable amount depending upon the type of transfer (person to person, person to business), the amount of the transfer, and the quickness that the transfer is to be made. They have a great feature on their website that makes determining the cost of a transfer easy."
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It stands for Variable Investment Trust. Essentially, it a mutual fund that is especially created for the use in variable and life insurance products such as AXA Equitable's Retirement Cornerstone Variable Annuity.
What is the APR rate on the newest Discover Credit Card?
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What is an Enhanced Credit Variable Annuity?
and investment vehicle that allows you to borrow at a variable rate.
What is the difference between fix and variable mortgages?
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What is the minimum acceptable transfer price for a division with no excess capacity where the variable cost per unit is 9 fixed cost per unit is 11 selling price per unit is 25 bought at 22?
25
Is 5B a numeric variable in basic programming?
No. A variable must not start with a number. B5, however, would be acceptable.
What number variable or number-variable is combined by multiplication or division?
In mathematics, a variable combined by multiplication or division with a number is referred to as a term. For example, in the expression (3x), the number 3 is multiplied by the variable (x). Similarly, in the expression (\frac{y}{4}), the variable (y) is divided by the number 4. These operations indicate a relationship between the variable and the constant through multiplication or division.
What is the answer to the analogy change is to variable as move is to what?
Transfer
How do you calculate transfer pricing?
The transfer price should be equal to the variable costs of the goods or services, plus the contribution margin per unit that is lost. =variable costs+(selling price-variable costs)
What is a division equation?
Example-64/a=8 a=8 Division equations must include a variable.
How do you clear a variable in PHP?
You can unset a variable in PHP by setting it to NULL. You can set a variable to NULL by declaring it normally, or using the function "unset()". Both methods are acceptable, and accomplish the same thing. Examples of both: ---- $variable = NULL; ---- unset($variable); ----
What is the difference between capacity cost and variable cost?
capacity cost : it is the cost which is incurred to increase its ability which can reduce or avoid by shutting down business variable cost: which varies with the output
Which operations would isolate the variable in this equation 3y - 12 14?
Division
When you have to use variable cost pricing?
it is used when company is operating below its capacity.
How do I isolate a variable using multiplication or division?
To isolate a variable using multiplication or division, you need to perform the opposite operation on both sides of the equation. For example, if the variable is multiplied by a coefficient, divide both sides by that coefficient to isolate the variable. Conversely, if the variable is divided by a number, multiply both sides by that number. Always ensure to maintain the equality of the equation by applying the same operation to both sides.
Is the specific heat capacity of iron a dependent variable in a scientific experiment?
Yes, the specific heat capacity of iron can be considered a dependent variable in a scientific experiment, as it is a characteristic that can be influenced or affected by changes in other variables being tested.
