subject
Business, 06.05.2020 03:39 kashbaby

Avery Company has two divisions, Polk and Bishop. Polk produces an item that Bishop could use in its production. Bishop currently is purchasing 22,000 units from an outside supplier for $14 per unit. Polk is currently operating at less than its full capacity of 580,000 units and has variable costs of $7 per unit. The full cost to manufacture the unit is $13. Polk currently sells 450,000 units at a selling price of $17 per unit. A. What will be the effect on Avery Company’s operating profit if the transfer is made internally?
B. What is the minimum transfer price from Polk’s perspective?C. What is the maximum transfer price from Bishop’s perspective?

ansver
Answers: 2

Another question on Business

question
Business, 21.06.2019 20:20
Avx home entertainment, inc., recently began a “no-hassles” return policy. a sample of 500 customers who recently returned items showed 400 thought the policy was fair, 32 thought it took too long to complete the transaction, and the rest had no opinion. on the basis of this information, make an inference about customer reaction to the new policy. (round your answers to 1 decimal place.)
Answers: 3
question
Business, 22.06.2019 13:30
Jose recently died with a probate estate of $900,000. he was predeceased by his wife, guadalupe, and his daughter, lucy. he has two surviving children, pete and fred. jose was also survived by eight grandchildren, pete’s three children, naomi, daniel, nick; fred’s three children, heather, chris and steve; and lucy’s two children, david and rachel. jose’s will states the following “i leave everything to my three children. if any of my children shall predecease me then i leave their share to their heirs, per stirpes.” which of the following statements is correct? (a) under jose’s will rachel will receive $150,000. (b) under jose’s will chris will receive $150,000. (c) under jose’s will nick will receive $100,000. (d) under jose’s will pete will receive $200,000.
Answers: 1
question
Business, 22.06.2019 20:00
Assume the perpetual inventory method is used. 1) the company purchased $12,500 of merchandise on account under terms 2/10, n/30. 2) the company returned $1,200 of merchandise to the supplier before payment was made. 3) the liability was paid within the discount period. 4) all of the merchandise purchased was sold for $18,800 cash. what effect will the return of merchandise to the supplier have on the accounting equation?
Answers: 2
question
Business, 23.06.2019 00:00
Both a demand curve and a demand schedule show how a. prices affect consumer demand. b. consumer demand affects income. c. prices affect complementary goods. d. consumer demand affects substitute goods.
Answers: 2
You know the right answer?
Avery Company has two divisions, Polk and Bishop. Polk produces an item that Bishop could use in its...
Questions
question
Mathematics, 25.07.2019 10:30
question
Mathematics, 25.07.2019 10:30
question
Mathematics, 25.07.2019 10:30
question
Biology, 25.07.2019 10:30