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:

Applied Behavior Analysis

A therapeutic strategy focused on improving specific behaviors through reinforcement and other principles of behavior.

Risky Behavior

Actions that expose individuals to potential harm or significant risk, often associated with detrimental health outcomes or safety concerns.

Safety Officer

An individual responsible for preventing accidents in the workplace by implementing safety policies and regulations to protect employees and the environment.

Conditioned Taste Aversions

A learned aversion to a particular taste or food that has been associated with a negative reaction, such as nausea or vomiting.