Division B Has Variable Manufacturing Costs of $50 Per Unit

question 19

Multiple Choice

Division B has variable manufacturing costs of $50 per unit and fixed costs of $10 per unit.Division B is operating significantly below capacity,what is the opportunity cost of an internal transfer when the market price is $75?

• A)$0
• B)$25
• C)$50
• D)$60
• E)$75

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Definitions:

Technical Skill

Proficiency or expertise in specific activities related to a field of work, particularly those involving methods, processes, procedures, or techniques.

Loyalty Of People

Loyalty of people refers to the steadfast allegiance and dedication individuals display towards other people, groups, or organizations.

Demonstrating

The act of showing or revealing characteristics, benefits, or methods through practical example or experiment.

Cyber Loafing

The act of using the internet and digital devices for personal activities during work hours, often leading to decreased productivity.