Answer:
The Parts Division of Nydron Corporation
The transfer price applicable to this transaction should range from $16.85 to $17.00.
Relevant costs for producing Part Y6P per unit are determined as variable or marginal costs:
Sales price to external companies = $17
Cost price from external supplier = $16.85
Marginal Costs:
Direct Materials $7
Direct Labor $3
Variable Manufacturing Overhead $4.50
Total Variable Costs = $14.50
Fixed Costs = $1.20
Total Costs = $15.20
Explanation:
This is a decision related to transfer pricing in a make-or-buy scenario. Management at Nydron Corporation should focus on relevant costs as well as the minimum and maximum transfer pricing. The costs that matter are those that could be avoided, known as avoidable costs, which influence decision-making. Since relevant costs amount to $14.50 (excluding the must-have fixed cost of $1.20, which remains constant regardless of the decision), and the part can be sold for $17.00 to customers outside, the transfer price will fall between the relevant manufacturing costs and the external sale price. Given that the part can be sourced from outside at $16.85, this sets the lower limit for the transfer price, while $17.00 becomes the cap.
The transfer price is defined as the amount one division can charge another division within the same company, as well as between subsidiaries and parent companies. Transfer pricing is a practice used for accounting and taxation that establishes prices for transactions conducted internally within companies and between subsidiaries under the same ownership. This practice encompasses both domestic and international transactions and carries tax implications.
Response:
The right choice is a) Constructive resistance.
Clarification:
Constructive Resistance refers to the capacity of structural components to endure the forces applied to them without failing. Various factors influence it, particularly the material, its shape, and how the elements are connected.
Goldman Sachs. Explanation: When all shares appreciate in value by 5%, the greatest impact on the S&P 500's increase would come from the option with the highest weight. Among the options, Apple weighs 4.955, General Electric is not included, Exxon Mobil weighs 2.1417, while Goldman Sachs has a weight of 5.1177. Thus, Goldman Sachs contributes the most significantly.
Response:
C. Locate a lender that is prepared to provide FHA loans.
Explanation:
The FHA loan program was established by the U.S. government to make home ownership more accessible for citizens. To qualify, the minimum credit score required is 500, with a down payment of 3.5% for scores of 580 or above, and 10% for scores between 500 and 579. Additionally, mortgage insurance must be acquired, and the proposed property must comply with FHA standards.
However, it is not within his control to find a lender offering FHA loans, as the lender must be sanctioned by the Federal Housing Administration. He can only secure a loan from a financial institution approved by the FHA.
Here are some strategies that Apple should implement to guarantee widespread use of Apple Pay -
i) Encourage more merchants to accept it by educating them and providing devices at low costs
ii) Expand support across various platforms so that users of different devices can access Apple Pay services
iii) Boost visibility by collaborating with additional e-commerce platforms and applications
