Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Question 4 1 pts The Alpha Division of Zeta Products manufactures widgets and sells them externally for $175. Its variable cost is $80 per unit,

image text in transcribedimage text in transcribedimage text in transcribed

Question 4 1 pts The Alpha Division of Zeta Products manufactures widgets and sells them externally for $175. Its variable cost is $80 per unit, and its fixed cost per unit is $25. The president of Zeta Products wants the Alpha Division to transfer (sell) 8,000 units to another division that buys them from an outside supplier for $165. If Alpha Division agrees to do so, its variable costs will increase to $85. Assuming the Alpha Division does not have any available capacity, the minimum transfer price it should accept is 0 $175 O $180 O $80 O $85 Question 6 1 pts Hutch is considering revising its manufacturing process. The new process will rely upon hand assembly by direct labor employees and eliminate the need for automated assembly equipment. If this change takes place O Hutch will reduce its degree of operating leverage and increase its risk of earnings volatility. o Hutch will increase its degree of operating leverage and lower its risk of earnings volatility. O Hutch will reduce its degree of operating leverage and lower its risk of earnings volatility. O Hutch will increase its degree of operating leverage and increase its risk of earnings volatility. Question 4 1 pts The Alpha Division of Zeta Products manufactures widgets and sells them externally for $175. Its variable cost is $80 per unit, and its fixed cost per unit is $25. The president of Zeta Products wants the Alpha Division to transfer (sell) 8,000 units to another division that buys them from an outside supplier for $165. If Alpha Division agrees to do so, its variable costs will increase to $85. Assuming the Alpha Division does not have any available capacity, the minimum transfer price it should accept is 0 $175 O $180 O $80 O $85 Question 6 1 pts Hutch is considering revising its manufacturing process. The new process will rely upon hand assembly by direct labor employees and eliminate the need for automated assembly equipment. If this change takes place O Hutch will reduce its degree of operating leverage and increase its risk of earnings volatility. o Hutch will increase its degree of operating leverage and lower its risk of earnings volatility. O Hutch will reduce its degree of operating leverage and lower its risk of earnings volatility. O Hutch will increase its degree of operating leverage and increase its risk of earnings volatility

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing Outsourced Functions Risk Management In An Outsourced World

Authors: Mark Salamasick

1st Edition

0894137255, 9780894137259

More Books

Students also viewed these Accounting questions