Spring Corp

question 31

Multiple Choice

Spring Corp.has two divisions,Daffodil and Tulip.Daffodil produces a gadget that Tulip could use in its production.Tulip currently purchases 100,000 gadgets for $12.50 on the open market.Daffodil's variable costs are $6 per widget while the full cost is $9.35.Daffodil sells gadgets for $13 each.If Daffodil is operating at less than full capacity,what would be the minimum transfer price Daffodil would accept for an internal transfer?

• A)$6.00
• B)$9.35
• C)$12.50
• D)$13.00

---

Definitions:

Children

Young human beings who are not yet adults, often characterized by rapid physical growth and developmental changes.

Parents

Individuals who have a child or children, either biologically, through adoption, or other means, and are responsible for their care and upbringing.

Coping Tactic

Strategies or methodologies employed by individuals to manage stress, overcome difficulties, or deal with emotional issues.

Personal Value

An individual's principles or standards of behavior, which guide their actions and judgments.