Business, 05.05.2020 11:49 pamelakroll98
Alpha and Beta are divisions within the same company. The managers of both divisions are evaluated based on their own division’s return on investment (ROI). Assume the following information relative to the two divisions: Case 1 2 3 4 Alpha Division: Capacity in units 50,000 292,000 104,000 192,000 Number of units now being sold to outside customers 50,000 292,000 79,000 192,000 Selling price per unit to outside customers $ 103 $ 41 $ 66 $ 45 Variable costs per unit $ 67 $ 20 $ 42 $ 32 Fixed costs per unit (based on capacity) $ 28 $ 8 $ 23 $ 7 Beta Division: Number of units needed annually 10,700 73,000 21,000 64,000 Purchase price now being paid to an outside supplier $ 96 $ 39 $ 66 * — *Before any purchase discount. Managers are free to decide if they will participate in any internal transfers. All transfer prices are negotiated.
Answers: 2
Business, 21.06.2019 21:50
The next dividend payment by savitz, inc., will be $2.08 per share. the dividends are anticipated to maintain a growth rate of 6 percent forever. if the stock currently sells for $42 per share, what is the required return?
Answers: 2
Business, 22.06.2019 16:00
In a perfectly competitive market, the long-run market supply curve tends to be horizontal or nearly so. what is another way to state this fact? (a) market supply is much more elastic in the long run than the short run. (b) in the long run, average total cost is minimized. (c) in the long run, price equals marginal cost. (d) market supply is much less elastic in the long run than the short run.
Answers: 1
Business, 22.06.2019 22:10
Which of the following tends to result in a decrease in the selling price of houses in an area? a. an increase in the population of the city or town. b. an increase in the labor costs of construction. c. an increase in the income of new residents in the city or town. d. an increase in mortgage interest rates.
Answers: 1
Business, 22.06.2019 22:40
Effective capacity is the: a. capacity a firm expects to achieve given the current operating constraints.b. minimum usable capacity of a particular facility.c. sum of all the organization's inputs.d. average output that can be achieved under ideal conditions.e. maximum output of a system in a given period.
Answers: 1
Alpha and Beta are divisions within the same company. The managers of both divisions are evaluated b...
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