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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,
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
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