The Variable Cost of Part X Is $50 Per Unit

question 32

Multiple Choice

The variable cost of Part X is $50 per unit and the full cost of the part is $80 per unit.The part is produced in Portugal and transferred to a plant in the United States.Portugal has a 10% income tax rate.The United States has a 50% income tax rate and an import duty equal to 10% of the price of the item.Part X can be transferred at full cost or variable cost.Assume Part X is transferred at full cost.By using full cost instead of variable cost for the transfer price,the income tax effect per unit in Portugal is ________.

• A) a decrease in tax by $3 per unit
• B) an increase in tax by $3 per unit
• C) a decrease in tax by $15 per unit
• D) an increase in tax by $15 per unit

Recognize the various uses of cash in a company.

Understand how to manage cash flow problems in the short term.

Understand the characteristics and differences between various sources of finance such as debt capital, equity capital, commercial paper, and venture capital.

Identify the roles and investment strategies of institutional investors like hedge funds, venture capitalists, and sovereign wealth funds.

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Definitions:

Gender-Based Stereotypes

Preconceived notions or beliefs about individuals based on their gender, which can lead to biased attitudes and behaviors.

Emotionally Intelligent Behaviors

Actions that demonstrate the ability to recognize, understand, and manage one's own emotions and those of others.

Agentic Characteristics

Traits associated with an individual's capability to act independently, make choices, and take control over their environment.

Communal Characteristics

Traits or qualities that define a community, including shared values, beliefs, interests, and behaviors among its members.