Tuesday, May 12, 2020
Multiple choice question Free Essay Example, 1000 words
$3,000 and $2,400.  b. $1,500 and $2,700.  c. $4,000 and $3,600.  d. $2,000 and $3,600.  e. $3,000 and $1,200.          Save Answer 29. (Points: 1)         A company is considering the purchase of some equipment that in the second year of operation should cause an increase in sales of $200,000, an increase in cash expenses of $120,000, and CCA of $60,000. If the appropriate tax rate is 40%, what will be the net cash inflow for year two?    a. net after-tax inflows of $12,000  b. net after-tax inflows of $72,000  c. net after-tax inflows of $50,000  d. no effect  e. net after-tax inflows of $20,000          Save Answer 30. (Points: 1)         The price one subunit of an organization charges for a product or service supplied to another subunit of the same organization is called    a. a fixed price.  b. a subunit price.  c. a transfer price.  d. an intermediate product price.  e. an interdepartmental product price.          Save Answer 31. (Points: 1)         Petrolia Paint Company has three divisions: Production, Transportation, and Paint. The companys Transportation Division is currently buying paint from the Paint Division for $24 per litre based on 125 percent of full cost. We will write a custom essay sample on Multiple choice question or any topic specifically for you Only $17.96 $11.86/pageorder now The market price per litre is $12.60. Which of the following would NOT occur if the company uses dual pricing to record the Transportation Division purchases of paint from the Paint Division?    a. credit the Paint Division for $12.60  b. debit the corporate account for $11.40  c. credit the Paint Division for $22.50  d. credit the Paint Division for $32.40  e. debit the Transportation Division for $12.60          Save Answer 32. (Points: 1)         Use the information below to answer the following question(s).  Soft Cushion Company is highly decentralized. Each division is empowered to make its own sales decisions. The Assembly Division can purchase a key component-stuffing-from the Production Division or from external suppliers. The Production Division has been the major supplier of stuffing in recent years. The Assembly Division has announced that two external suppliers will be used to purchase the stuffing at $20 per kilogram for the next year. The Production Division recently increased its unit price to $40. The manager of the Production Division presented the following information; variable cost $32, fixed cost $8, to top management in order to attempt to force the Assembly Division to purchase the stuffing internally.
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