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Holiday Corp. has two divisions. Quail and Marlin, Quail produces a widget that Marlin could use in its production Quail's variable costs are $4.30 per

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Holiday Corp. has two divisions. Quail and Marlin, Quail produces a widget that Marlin could use in its production Quail's variable costs are $4.30 per widget while the full cost is $7.30. Widgets sell on the open market for $12.60 each. If Quail has excess capacity, what would be the maximum transfer price of Marlin currently is purchasing 115,000 units on the open market? Multiple Choice $730 $530 o $4.30 O $1260 Tiffany Company has two divisions, Gold and Silver Gold produces a unit that Silver could use in its production Silver currently is purchasing 50,000 units from an outside supplier for $25. Gold is operating at less than full capacity and has variable costs of $13.50 per unit. The full cost to manufacture the unit is $20. Gold currently sells 450.000 units at a selling price of $27. If an internal transfer is made, variable shipping and administrative costs of S1 per unit could be avoided. How much will Silver save by not purchasing from outside if a transfer price of $22.50 is agreed upon? Multiple Choice $125.000 $225,000 $175.000 $250.000 Newport Corp. is considering the purchase of a new piece of equipment. The cost savings from the equipment would result in an annual Increase in cash flow of $200,000. The equipment will have an initial cost of $900,000 and have a 6-year life. There is no salvage value for the equipment. If the hurdle rate is 8%, what is the approximate net present value? Ignore income taxes (Future Value of $1. Present Value of $1. Future Value Annuity of $1. Present Value Annuity of $1. (Use appropriate factor from the PV tables. Round your final answer to the nearest dollar amount.) Multiple Choice $300,000 o $24.580 $924580 O $900,000

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