Figure 12-3

question 140

Multiple Choice

Figure 12-3. Grey Inc.has many divisions that are evaluated on the basis of ROI.One division,Centra,makes boxes.A second division,Mantra,makes chocolates and needs 80,000 boxes per year.Centra incurs the following costs for one box:
Centra has capacity to make 700,000 boxes per year.Mantra currently buys its boxes from an outside supplier for $1.80 each (the same price that Centra receives) .
Refer to Figure 12-3.Assume that Grey Inc.allows division managers to negotiate transfer price.Centra is producing 600,000 boxes.If Centra and Mantra agree to transfer boxes,what is the floor of the bargaining range and which division sets it?

• A)$1.80; Centra
• B)$1.48; Centra
• C)$1.48; Mantra
• D)$1.35; Mantra
• E)$1.35; Centra

Recognize the importance of community creation and engagement on social media platforms.

Comprehend the importance of authenticity and content creation in influencer impact.

Differentiate between various segmentation techniques and their applications in social media marketing.

Identify the characteristics and strategies of a successful influencer marketing campaign.

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Definitions:

Collection Time

The average period it takes for a business to receive payments owed by its customers after a sale has been made.

Lockbox System

A service provided by banks to companies for receiving payments from customers; payments are sent to a post office box and then quickly processed by the bank.

Money Market Securities

Money Market Securities are short-term debt instruments that are highly liquid and considered safe, such as Treasury bills, certificates of deposit, and commercial paper.

Collection Time

The average period it takes for a business to receive payments owed by its customers, reflecting the effectiveness of its credit and collection policies.