subject
Business, 24.10.2019 18:43 AaronMicrosoft15

Alarge electronics company is organized into mainly profit-center divisions. the components division and the consumer electronics division are profit-center divisions of the company. the components division produces individual chips and other electronic components. the components division supplies outside vendors in addition to the consumer electronics division. the consumer electronics division assembles components into devices sold to consumers. recently, there has been a dispute between the two divisions over a particular chip used in the production of a smart phone. the consumer electronics division argues that they are being overcharged because the transfer price they are being charged is significantly higher than the marginal cost of producing the chip. the transfer price includes a charge to recover fixed overhead costs as well as a mark-up to provide a profit margin for the components division. the components division argues that they need to charge a price commensurate with all their costs and that allows them to earn a reasonable profit for their output. compounding the issue, the particular chip under dispute is available from other vendors at a price less than the transfer price but higher than the marginal cost of production. you have been hired to suggest a solution to this problem. what would you recommend the electronics company do?

ansver
Answers: 1

Another question on Business

question
Business, 21.06.2019 22:20
Outstanding stock consists of 8,300 shares of cumulative 7% preferred stock with a $10 par value and 4,300 shares of common stock with a $1 par value. during the first three years of operation, the corporation declared and paid the following total cash dividends. year dividend declared 2016 $ 0 2017 $ 7,300 2018 $ 45,000 the amount of dividends paid to preferred and common shareholders in 2018 is:
Answers: 2
question
Business, 22.06.2019 03:10
Complete the sentences. upper a decrease in current income taxes the supply of loanable funds today because it a. decreases; increases disposable income, which decreases saving b. has no effect on; doesn't change expected future disposable income c. decreases; decreases expected future disposable income d. increases; increases disposable income, which encourages greater saving upper a decrease in expected future income a. increases the supply of loanable funds today because households with smaller expected future income will save more today b. has no effect on the supply of loanable funds c. decreases the supply of loanable funds because it decreases wealth d. decreases the supply of loanable funds today because households with smaller expected future income will save less today
Answers: 3
question
Business, 22.06.2019 15:00
Why entrepreneurs start businesses. a) monopolistic competition b) perfect competition c) sole proprietorship d) profit motive
Answers: 1
question
Business, 22.06.2019 18:00
During the holiday season, maria's department store works with a contracted employment agency to bring extra workers on board to handle overflow business, and extra duties such as wrapping presents. maria's is using during these rush times.
Answers: 3
You know the right answer?
Alarge electronics company is organized into mainly profit-center divisions. the components division...
Questions
question
Mathematics, 17.07.2019 15:30
Questions on the website: 13722362