Holiday Corp

question 53

Multiple Choice

Holiday Corp.has two divisions,Quail and Marlin.Quail produces a widget that Marlin could use in its production.Quail's variable costs are $4 per widget while the full cost is $7.Widgets sell on the open market for $12 each.If Quail has excess capacity,what would be the maximum transfer price if Marlin currently is purchasing 100,000 units on the open market?

• A)$4.00
• B)$5.00
• C)$7.00
• D)$12.00

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Definitions:

Labour Markets

The supply and demand dynamics of workers, where employers seek to hire labor and individuals offer their skills and abilities in exchange for compensation.

Business Dealings

The formal relations and transactions conducted between businesses or between businesses and individuals.

Computer Languages

Formal languages comprising a set of instructions that can be used to produce various kinds of output, including software programs, used in computing.

Organisation

A structured group of individuals working together to achieve common goals or objectives.