Infobytes Corporation Infobytes Corporation Manufactures and Sells Various High-Tech Office

question 155

Multiple Choice

Infobytes Corporation Infobytes Corporation manufactures and sells various high-tech office automation products.Two divisions of Infobytes Corporation are the Computer Chip Division and the Computer Division.The Computer Chip Division manufactures one product,a "super chip," that can be used by both the Computer Division and other external customers.The following information is available on this month's operations in the Computer Chip Division:
Presently,the Computer Division purchases no chips from the Computer Chips Division,but instead pays $45 to an external supplier for the 4,000 chips it needs each month.
Refer to Infobytes Corporation.Two possible transfer prices (for 4,000 units) are under consideration by the two divisions: $35 and $40.Corporate profits would be ____ if $35 is selected as the transfer price rather than $40.

• A)$20,000 larger
• B)$40,000 larger
• C)$20,000 smaller
• D)the same

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Definitions:

Smaller Society

represents a community or group of people that is smaller in size, often characterized by closer personal relationships and potentially more cohesive norms and values.

Large Organization

A company or enterprise characterized by a large scale of operations, extensive administrative structures, and a significant number of employees.

Organizational Culture

The collection of values, expectations, and practices that guide and inform the actions of all members within an organization.

Societal Culture

Societal culture refers to the shared values, norms, and practices that characterize a society.