Nanke Products, Inc

question 37

Multiple Choice

Nanke Products, Inc., has a Sensor Division that manufactures and sells a number of products, including a standard sensor that could be used by another division in the company, the Safety Products Division, in one of its products. Data concerning that sensor appear below: The Safety Products Division is currently purchasing 3,000 of these sensors per year from an overseas supplier at a cost of $59 per sensor.
Assume that the Sensor Division is selling all of the sensors it can produce to outside customers. What should be the minimum acceptable transfer price for the sensors from the standpoint of the Sensor Division?

• A) $37 per unit
• B) $59 per unit
• C) $20 per unit
• D) $64 per unit

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Definitions:

Neurophysiological Learning

The process of forming and strengthening neural connections in the brain as a result of learning and experience.

Inner Processes

Internal cognitive or psychological activities that influence thoughts, feelings, and behaviors.

Cognitive Map

A mental representation of one's physical environment, allowing for navigation, understanding spatial relationships, and planning routes.

Gestalt

An approach emphasizing that the whole of something is greater than its parts, used particularly in psychology to describe patterns and perceptions.