Question 1
When an industry has excess capacity, market prices may drop well below their historical average. If this drop is temporary, it is called ________.
◦ distress prices
◦ dropped prices
◦ low-average prices
◦ substitute prices
Question 2
Cornerstone Company has two divisions. The Bottle Division produces products that have variable costs of $3 per unit. Its 20X5 sales were 140,000 to outsiders at $5 per unit and 40,000 units to the Mixing Division at 140% of variable costs. Under a dual transfer-pricing system, the Mixing Division pays only the variable cost per unit. The fixed costs of the Bottle Division are $125,000 per year.
Mixing sells its finished products to outside customers for $11.50 per unit. Mixing has variable costs of $2.50 per unit in addition to the costs from the Bottle Division. The annual fixed costs of Mixing were $85,000. There were no beginning or ending inventories during the year.
Required:
What are the operating incomes of the two divisions and the company as a whole for the year? Explain why the company's operating income is less than the sum of the two divisions' total income.
The division of labour in insect societies.
Cell Division
Garden in a bottle
How to find the derivative of a function when the base and exponent contain a variable x^x
GeneChip (Affymetrix, Inc.) after hybridization to p53 PCR products
Embryo After 3 Mitotic Divisions