Spring Corp

question 11

Multiple Choice

Spring Corp.has two divisions,Daffodil and Tulip.Daffodil produces a gadget that Tulip could use in its production.Tulip currently purchases 100,000 gadgets for $12.50 on the open market.Daffodil's variable costs are $6 per widget while the full cost is $9.35.Daffodil sells gadgets for $13 each.If Daffodil is operating at less than full capacity,what would be the maximum transfer price Tulip would pay internally?

• A)$6.00
• B)$9.35
• C)$12.50
• D)$13.00

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Definitions:

Personality Type

A classification of individuals according to shared psychological traits, as identified in various theories of personality.

Aggressive

Refers to behavior that aims to harm or intimidate others, often displayed through physical or verbal actions.

Neurotic Trend

Patterns of behavior or thought that are characteristic of neurosis, often manifesting as irrational fears, anxieties, or obsessive acts.

Moving Toward

In psychological terms, it refers to an adaptive strategy where an individual seeks to reduce anxiety and establish security through affiliating or aligning with others.