Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Question: Transfer Prices and Idle Capacity The Eugene division of Union Furniture purchases lumber, which it uses to fabricate tables, chairs, and other wood furniture. It purchases most of the lumber from Shasta Mill, also a division of Union Furniture. Both the Eugene division and Shasta Mill are profit centers. The Eugene division proposes to produce a new Shaker-style chair that will sell for $95. The manager is exploring the possibility of purchasing the required lumber from Shasta Mill. Production of 800 chairs is planned, using capacity in the Eugene division that is currently idle. The Eugene division can purchase the lumber needed for one chair from an outside supplier for $72. Union Furniture has a policy that internal transfers are priced at fully allocated cost. Assume the following costs for the production of one chair and the lumber required for the chair:
1. Assume that the Shasta Mill has idle capacity and, therefore, would incur no additional fixed costs to produce the required lumber. Would the Eugene division manager buy the lumber for the chair from the Shasta Mill given the existing transfer-pricing policy? Why or why not? Would the company as a whole benefit if the manager decides to buy from the Shasta Mill? Explain.
2. Assume that there is no idle capacity at the Shasta Mill and the lumber required for one chair can be sold to outside customers for $72. Would the company as a whole benefit if the Eugene manager buys from Shasta? Explain.
Question: Explain why the free rider problem makes it difficult for perfectly competitive markets to provide the Pareto efficient level of a public good.
Some commentators have argued that the failure of the “Super committee” is good thing for the economy? Do you agree?
Case study analysis about optimum resource allocation: - Why might you suspect (even without evidence) that the economy might not be able to produce all the schools and clinics the Ministers want? What constraints are there on an economy's productio..
Questions: : Which of the following are likely to be fixed costs and which variable costs for a chocolate factory over the course of a month? Explain your choice.
Problem - Total Cost, Average Cost, Marginal Cost: - Complete the following table of costs for a firm. (Note: enter the figures in the MC column between outputs of 0 and 1, 1 and 2, 2 and 3, etc.)
Problem based on Oligopoly and demand curve, Draw and explain the demand curve facing each firm, and given this demand curve, does this mean that firms in the jeans industry do or do not compete against one another?
Explain the impact of external costs and external benefits on resource allocation; Why are public goods not produced in sufficient quantities by private markets? Which of the following are examples of public goods (or services)? Delete the incorrec..
Describe the differences between shifts in demand and movements along the demand curve. What are the main factors which can shift the demand curve? Explain why they cause the demand curve to shift. Use examples and draw graphs to support your discuss..
Article Review Question: Read the following excerpts from the article "Fruit, veg costs surge' by Todd, Dagwell, published in the Herald on January 25th 2011 and answer questions below:
Long-term Growth, International Trade & Globalization:- This question deals with concepts such as long-term growth, international trade and globalization. Questions related to trade deficit, trade surplus, gains from trade, an international trade sce..
"Does the economic bailout of Spain and Greece spell the beginning of the end for the European Monetary Union (EMU)?"
Read the rules of the game, the overview and the almanac for the Development Game "Settlers of Catan"
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd