Swan Company Has Two Divisions,Hill and Paradise

question 71

Multiple Choice

Swan Company has two divisions,Hill and Paradise.Hill produces a unit that Paradise could use in its production.Paradise currently is purchasing 5,000 units from an outside supplier for $56.Hill is operating at less than full capacity and has variable costs of $30.80 per unit.The full cost to manufacture the unit is $43.40.Hill currently sells 450,000 units at a selling price of $61.60.How much will Paradise save by not purchasing from outside if a transfer price of $42 is agreed upon?

• A)$70,000
• B)$56,000
• C)$7,000 more cost
• D)$28,000

Recognize the importance of critical thinking in nursing practice.

Identify steps in the decision-making process in nursing.

Illustrate healthy skepticism and the questioning of policies in nursing.

Demonstrate critical thinking attitudes in nursing.

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Definitions:

Task Maturity

Having the skill set necessary to complete a job, as well as the ability to set and meet realistic goals and the ability to take on responsibility for the task.

Seniority

The concept of giving priority to individuals based on their length of service or time spent in a position or organization.

Overloading

The situation wherein a system or individual is given more work or responsibility than they can manage.

Underutilizing

Not making the most effective or efficient use of resources, employees, or capabilities.