Ganus products, inc., has a relay division that manufactures and sells a number of products, including a standard relay that could be used by another division in the company, the electronics division, in one of its products. data concerning that relay appear below: capacity in units 37,500 selling price to outside customers $ 29 variable cost per unit $ 9 fixed cost per unit (based on capacity) $ 18 the electronics division is currently purchasing 5,250 of these relays per year from an overseas supplier at a cost of $26 per relay. assume that the relay division is selling all of the relays it can produce to outside customers. also assume that $7 in variable expenses can be avoided on transfers within the company due to reduced shipping and selling costs. does there exist a transfer price that would make both the relay and electronics division financially better off than if the electronics division were to continue buying its relays from the outside supplier?

True tomato inc. makes organic ketchup. to promote its products, this firm decided to make bottles in the shape of tomatoes. to accomplish this, true tomato worked with its bottle manufacture to create a set of unique molds for its bottles. which of the following specialized assets does this example demonstrate? (a) site specificity (b) research specificity (c) physical-asset specificity (d) human-asset specificity

P8-4b dropping unfavorable division based on the following analysis of last year's operations of groves, inc., a financial vice president of the company believes that the firm's total net income could be increased by $160,000 if its design division were discontinued. (amounts are given in the thousands of dollars.) required provide answers for each of the following independent situations: a. assuming that total fixed costs and expenses would not be affected by discontinuing the design division, prepare an analysis showing why you agree or disagree with the vice president. b. assume that the discontinuance of the design division will enable the company to avoid 30% of the fixed portion of cost of services and 40% of the fixed operating expenses allocated to the design division. calculate the resulting effect on net income. c. assume that in addition to the cost avoidance in requirement (b), the capacity released by discontinuance of the design division can be used to provide 6,000 new services that would have a variable cost per service of $60 and would require additional fixed costs totaling $68,000. at what unit price must the new service be sold if groves is to increase its total net income by $180,000?

Tubby toys estimates that its new line of rubber ducks will generate sales of $7.60 million, operating costs of $4.60 million, and a depreciation expense of $1.60 million. if the tax rate is 35%, what is the firm’s operating cash flow? (enter your answer in millions rounded to 2 decimal places.)