Delemos Products, Inc

question 96

Multiple Choice

Delemos Products, Inc., has a Transmitter Division that manufactures and sells a number of products, including a standard transmitter. Data concerning that transmitter appear below: The Remote Devices Division of Delemos Products, Inc needs 6,000 special heavy-duty transmitters per year. The Transmitter Division's variable cost to manufacture and ship this special transmitter would be $66 per unit. Because these special transmitters require more manufacturing resources than the standard transmitter, the Transmitter Division would have to reduce its production and sales of standard transmitters to outside customers from 83,000 units per year to 76,400 units per year.
From the standpoint of the Transmitter Division, what is the minimal acceptable transfer price for the special transmitters for the Remote Devices Division?

• A) $90.00 per unit
• B) $98.00 per unit
• C) $104.00 per unit
• D) $107.80 per unit

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Definitions:

Neural Tissue

Neural tissue refers to the specialized cells and biological material that make up the nervous system, including the brain, spinal cord, and nerves, facilitating the transmission of electrical signals throughout the body.

Colour Vision

The ability of the eye and brain to perceive differences in wavelengths of light, enabling humans and other animals to see a variety of colors.

Defective Receptors

Abnormal proteins on the surface of cells that impair the cell's ability to respond to stimuli.

Amplitude

In physics, amplitude refers to the maximum distance moved by a point or object from its equilibrium position in a periodic motion, such as in waves or vibrations.