The Managerial Accountant at Bottles for Less Makes Internal Transfers

question 62

Multiple Choice

The managerial accountant at Bottles for Less makes internal transfers at 175% of full cost.The Refining Division purchases 25,000 containers per day,on average,from a local supplier,who delivers the containers through an external shipper.
To determine if they can reduce costs,the company located an independent supplier in Virginia who is willing to sell 25,000 containers at $20 each,delivered to the Shipping Division in Wyoming.The company in Wyoming can ship the 25,000 containers at a variable cost of $2.50 per container.
Required
Compute the full cost to the company if it purchases the containers from the independent supplier.

• A)$200,000
• B)$250,000
• C)$300,000
• D)$450,000
• E)$500,000

Understand the factors that influence the strength of electro-magnets.

Understand the impact of taxes on market prices, including how taxes decrease the price received by sellers.

Analyze the effects of taxes on consumer surplus, producer surplus, and total surplus.

Identify and calculate the deadweight loss resulting from a tax.

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Definitions:

Sea Level

The average height of the ocean's surface between high and low tide, used as a reference point for measuring elevations and atmospheric pressure.

Fluid

A substance that has fluidity; that is, it lacks definite shape and both flows readily and yields to the slightest pressure. Most liquids and gases are fluids.

Gases

Substances that exist in a state that fills any container uniformly, without a definite shape or volume, such as oxygen or nitrogen.

Vapors

Gaseous forms of substances which are liquid or solid at room temperature, often produced by evaporation or sublimation.