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Question 15 5 pts Expand Inc. plans to buy new equipment at a cost of $300,000 with useful life of 8 years. This equipment will
Question 15 5 pts Expand Inc. plans to buy new equipment at a cost of $300,000 with useful life of 8 years. This equipment will allow Expand to generate additional cash ow of $29,626 per year or, in terms of additional accounting income, $10,346 per year. What is the salvage value of this equipment? Question 14 5 pts Pharma Co. is a pharmaceutical consisting of two divisions. Division 1 manufactures drugs and sells them to Division 2, which carries out quality control and distributes drugs. The costs of Division 1 are as follows. Direct Materials Direct Labor Variable Overhead Fixed Overhead Additional variable costs Division 2 incurs are $53 per pack. To facilitate interaction between divisions, Pharma Co. uses a transfer price determined according to the cost-based method computed for variable costs of manufacturing per pack drugs and the mark up of 26%. What is the transfer price of a pack
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