60.1K

Verified Solution

Link Copied!

used by of Soeklift trucks. Presently, it sells 12,000 units per year to outside customers from transferring the units within the 14. Division X of Charter Corporation makes and sells a single product that is mansfacturers at 524 annsal capacity is 20,000 units, and the variable cost to make each unit is units a year from Division 4 per wsit The S16. Division Y of Chanter Corporation would like to buy 10,000 u X to use in its products. There would be no cost savings f company rather than sclling them on the outside market. What should be the lowest acceptable transfer price from the perspective of Division X? (A) 516.00. (B) $17.60 (C) 521.40 (D) 522.40 (E) $24.00 ce 15. Billy's Bookkeping Service is considering buying equipment to file electronic tax returns equipment cost would be $10,000, depreciation would be $2,000 per year for 3 years s estimated to increase Billy's net annual cash inflow by $3,000 in year 1 The $3,000 in year 2, 53,500 in year 3, $4,000 in year 4, and $2,000 in year 5. The equipment wouid be scrapped at the end or year 5. itwould have no salvage value. What is the estimated payhack period for this project? (A) 9.091 years (B) 5.000 years (C) 4 125 years (D) 3.226 years (E) 3.125 yeans Resed on the following information, answer Ourstion 16-17 The Stream Division has made the available for June: 520 Prime cost t labour 16. If Stream has excess capucity, the most appropriate price at which to transfer its the River Division is (A) 5520. (B) S510 (C) 3450. (D) $270 (E) $200 17. If Stream does sor have excess capacity and can sell all of its production extemally, the most appropriate price at which to transfer the product to River Division is (A) $520, (B) 5510 (C) 5450. (D) $270. (E) $200

Answer & Explanation Solved by verified expert

See Answer