Figure 12-4

question 17

Multiple Choice

Figure 12-4. Quinn Inc.has a number of divisions.One division,Style,makes zippers that are used in the manufacture of boots.Another division,LeatherStuff,makes boots that use the zippers and needs 90,000 zippers per year.Style incurs the following costs for one zipper:
Quinn has capacity to make 950,000 zippers per year,but due to a soft market,only plans to produce and sell 620,000 zippers next year.LeatherStuff currently buys zippers from an outside supplier for $3.50 each (the same price that Style receives) .
Refer to Figure 12-4.Assume that Style and LeatherStuff have agreed on a transfer price of $3.25.What is the total benefit for Style?

• A)$243,000
• B)$292,500
• C)$118,800
• D)$69,000
• E)$81,000

---

Definitions:

Club Drug

Psychoactive substances that are commonly used in nightlife settings such as clubs, concerts, and parties to enhance sensory experiences and social interactions.

Ecstasy (MDMA)

A drug chemically related to amphetamines and hallucinogens, used illicitly for its euphoric and hallucinogenic effects.

Hallucinogenic

Substances that cause altered states of perception, thought, and feeling, leading to hallucinations.

Cocaine

A powerful stimulant drug derived from the leaves of the coca plant, often used recreationally for its effects on energy and mood.