subject
Business, 06.11.2019 22:31 isabellamason1499

Babcock company manufactures fast-baking ovens in the united states at a production cost of $500 per unit and sells them to uncontrolled distributors in the united states a wholly owned sales subsidiary in canada. babcock’s u. s. distributors sell the ovens to restaurants at a price of $1,000, and its canadian subsidiary sells the oven at a price of $1,100. other distributors of ovens to restaurants in canada normally earn a gross profit equal to 25 percent of selling price. babcock’s main competitor in the united states sells fast-baking ovens at an average 50 percent markup on cost. babcock’s canadian sales subsidiary incurs operating costs, other than cost of goods sold, that average $250 per oven sold. the average operating profit margin earned by canadian distributors of fast-baking ovens is 5 percent.
which of the following would be an acceptable transfer price under the resale price method?
(a) $700
(b) $750
(c) $795
(d) $825

ansver
Answers: 3

Another question on Business

question
Business, 21.06.2019 21:00
Symantec corp., located in cupertino, california, is one of the world's largest producers of security and systems management software. the company's consolidated balance sheets for the 2009 and 2008 fiscal years included the following ($ in thousands): current assets: receivables, less allowances of $21,766 in 2009 and $24,089 in 2008 $ 838,010 $ 758,700 a disclosure note accompanying the financial statements reported the following ($ in thousands): year ended 2009 2008 (in thousands) trade accounts receivable, net: receivables $ 859,776 $ 782,789 less: allowance for doubtful accounts (8,938) (8,990) less: reserve for product returns (12,828) (15,099) trade accounts receivable, net: $ 838,010 $ 758,700 assume that the company reported bad debt expense in 2009 of $2,000 and had products returned for credit totaling $3,230 (sales price). net sales for 2009 were $6,174,800 (all numbers in thousands).required: what is the amount of accounts receivable due from customers at the end of 2009 and 2008? what amount of accounts receivable did symentec write off during 2009? what is the amount of symentec’s gross sales for the 2009 fiscal year? assuming that all sales are made on a credit basis, what is the amount of cash symentec collected from customers during the 2009 fiscal year?
Answers: 3
question
Business, 22.06.2019 11:20
Which stage of group development involves members introducing themselves to each other?
Answers: 3
question
Business, 22.06.2019 15:10
Paying attention to the purpose of her speech, which questions can she eliminate? a. 1 and 2 b. 3 c. 2 and 4 d. 1-4
Answers: 2
question
Business, 22.06.2019 19:00
Why is accountability important in managing safety
Answers: 2
You know the right answer?
Babcock company manufactures fast-baking ovens in the united states at a production cost of $500 per...
Questions
Questions on the website: 13722367