Figure 12-8 Bostonian Inc.has a Number of Divisions,including Delta Division and ListenNow

question 115

Essay

Figure 12-8
Bostonian Inc.has a number of divisions,including Delta Division and ListenNow Division.The ListenNow Division owns and operates a line of MP3 players.Each year the ListenNow Division purchases component AZ in order to manufacture the MP3 players.Currently it purchases this component from an outside supplier for $6.50 per component.The manager of the Delta Division has approached the manager of the ListenNow Division about selling component AZ to the ListenNow Division.The full product cost of component AZ is $3.10.The Delta Division can sell all of the components AZ it makes to outside companies for $6.50.The ListenNow Division needs 18,000 component AZs per year; the Delta Division can make up to 60,000 components per year.
Refer to Figure 12-8.Assume that the company policy is that all transfer prices are negotiated by the divisions involved.
Required:
A.What is the maximum transfer price? Which division sets it?
B.What is the minimum transfer price? Which division sets it?
C.If the transfer takes place,what will be the transfer price?

Applying molecular orbital theory to explain bonding and molecular structure.

Drawing skeletal structures of constitutional isomers for given molecular formulas.

Counting sigma and pi bonds in molecules.

Recognizing the presence of geometric isomerism and distinguishing between different types of isomers.

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Definitions:

Arousal

A state of heightened physiological activity or alertness, often driven by emotional, physical, or mental stimuli.

Sensory Systems

The parts of the body involved in the reception and processing of sensory information from the environment, enabling perception.

Colour-Blind

The inability to perceive differences between some of the colors that others can distinguish.

Vision

The ability to see or the faculty of sight; it can also refer to the capacity to envisage future developments and work towards them.