Evergreen Corp

question 37

Multiple Choice

Evergreen Corp.has two divisions,Fern and Bark.Fern produces a widget that Bark could use in the production of units that cost $175 in variable costs,plus the cost of the widget,to manufacture.Fern's variable costs are $60 per widget,and fixed manufacturing costs are applied at a rate of $36 per widget.Widgets sell on the open market for $105 each.Evergreen's policy is that internal transfers will be made at full cost.If Bark purchases the widgets from Fern,what will be the transfer price?

• A)$60
• B)$96
• C)$105
• D)$175

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Definitions:

Fear

An emotional response to perceived threats or danger, leading to a desire to avoid or confront the source of fear.

Impulsive Behaviour

Actions performed with little or no forethought, reflection, or consideration of the consequences.

Personality Disorder

A mental condition marked by persistent patterns of behavior, thought, and emotional experience that are maladaptive and significantly diverge from what is considered normal within the person's culture, manifesting in various situations.

Immature

A term describing an organism or individual that has not yet reached full development, growth, or maturity.