21.4 Transfer Prices The Hazel Division's unit sales price is $100 and its unit variable cost is $60.Hazel has capacity to produce 10,000 units and is currently selling 8,000 units externally. Fixedcosts per unit are $32. If the Hazel Division sells 2,000 units to the Wolf Division, what is theopportunity cost per unit to the Hazel Division?

The opportunity cost per unit to the Hazel Division can be calculated by considering the…

Answered: 21.4 Transfer Prices The Hazel…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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13. The Basheer Corporation has a breakeven point when sales are 100,000 units and Rs.320,000, and variable costs at that level of sales are Rs.200,000. How many additional units would have to be sold to reach a new breakeven point, if fixed costs doubled? А. 100,000. 120,000. 160,000. 325,000. В. С. D. 14. Cost that are identified with and traced to, one product or specific batch of products are called: А. ОН cost В. Indirect costs С. Fixed costs D. Direct costs
Question Content Area Carmen Co. can further process Product J to produce Product D. Product J is currently selling for $23.95 per pound and costs $16.00 per pound to produce. Product D would sell for $36.45 per pound and would require an additional cost of $9.00 per pound to produce. The differential cost of producing Product D is?
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4 At its $34 selling price, Atlantic Company has sales of $34,000, variable manufacturing costs of $5,000, fixed manufacturing costs of $2,000, variable selling and administrative costs of $5,000 and fixed selling and administrative costs of $2,000. What is the company's contribution margin per unit? Multiple Choice $29 $20 $22 $24
QUESTION 38 Insourcing incurs an annual fixed cost of $30,000 and a variable cost of $60 per unit. Outsourcing incurs an annual fixed cost of $50,000 and a variable cost of $20 per unit. Using the Make-or-Buy analysis, what is the indifference point between the two alternatives? (Note your answer for question 39) a) 500 units b) 1000 units c) 1500units d) 2000 units e) 800 units QUESTION 39 For the scenario in Q38, anticipated demand is then forecast to be 1000 units. Which option would be most appropriate? a) Insource b) Outsource c) Either option d) Not enough information to evaluate e) None
Sales Mix and Break-Even Analysis Heyden Company has fixed costs of $567,000. The unit selling price, variable cost per unit, and contribution margin per unit for the company's two products follow: Product Selling Price Variable Cost per Unit Contribution Margin per Unit QQ $500 $340 $160 zZ 280 160 120 The sales mix for Products QQ and ZZ is 50% and 50%, respectively. Determine the break-even point in units of QQ and ZZ. If required, round your answers to the nearest whole number. a. Product QQ units b. Product ZZ units
Question A and D
Assume the following information: Amount Per Unit Sales $ 600,000 $ 40 Contribution margin $ 360,000 $ 24 Net operating income $ 240,000 If the selling price per unit increases by 8% and unit sales drop by 6%, then the best of estimate of the new net operating income is: Multiple Choice $263,520. $243,520. $253,520. $233,520.
Question 3
H
2.7 The Delaware Company has fixed costs of Birr 100,000 per year and variable costs of Birr10 per unit of output. The Pennsylvania Company has fixed costs of Birrl 20,000 per year and variable costs of Birr 9 per unit of output. The sales price per unit is the same for both companies. Identify a sales price at which both companies will have the same break-even point in terms of number of units sold.
QUESTION 2 Luna Sea Sushi, Inc. has total costs of $120,000 when it sells 40,000 units. If total fixed costs are $40,000, what is variable cost per unit?

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