Holiday Corp

question 45

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 is operating at 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

Gain skills in developing effective questionnaires for research.

Develop the ability to define the scope and statement of purpose for research reports.

Comprehend the importance of fact-based conclusions in data interpretation.

Identify common errors in data interpretation and learn strategies to avoid them.

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Definitions:

Labor

The human effort, including physical and mental exertion, used in the production of goods and services.

Marginal Product

Marginal product refers to the increase in output that results from employing one more unit of a particular input while keeping other inputs constant.

Power Cords

Electrical cables that connect an appliance, device, or equipment to the main electricity supply.

Third Worker

Refers to an additional laborer in a scenario, typically discussed in the context of marginal productivity or the law of diminishing returns.