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25.04.2020 •
Business
Full Serve Inc. has a number of divisions. One division, Gamma, makes zippers that are used in the manufacture of boots. Another division, Delta, makes boots that use the zippers and needs 95,000 zippers per year. Gamma incurs the following costs for one zipper: Direct materials $0.25 Direct labor 0.22 Variable overhead 0.97 Fixed overhead 1.40 Total $2.84 Full Serve has the capacity to make 960,000 zippers per year, but due to a soft market, it only plans to produce and sell 630,000 zippers next year. Delta currently buys zippers from an outside supplier for $4.00 each (the same price that Gamma receives). Assume that Full Serve allows negotiated transfer pricing. What is the floor of the bargaining range and which division sets it?
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Ответ:
Answer
Hi,
The correct answer option is {c} Liquidity
Explanation
The basic principle of bonds is that the investor loans money to the bond’s issuer who pays interest on the loan typically twice a year. The common three characteristics of bonds are the face value which is the principal portion of the loan, maturity which is the day the bond comes to due and the coupon which is the size of interest paid.
Hope this helps!