Wetherald Products, Inc

question 50

Multiple Choice

Wetherald Products, Inc., has a Pump Division that manufactures and sells a number of products, including a standard pump that could be used by another division in the company, the Pool Products Division, in one of its products. Data concerning that pump appear below: The Pool Products Division is currently purchasing 4,000 of these pumps per year from an overseas supplier at a cost of $74 per pump.
Assume that the Pump Division has enough idle capacity to handle all of the Pool Products Division's needs. What should be the minimum acceptable transfer price for the pumps from the standpoint of the Pump Division?

• A) $74 per unit
• B) $53 per unit
• C) $64 per unit
• D) $82 per unit

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Definitions:

Alpha Waves

Brain waves detected by EEG that represent a state of relaxation with eyes closed, typically associated with calm wakefulness.

Sleep Spindles

A burst of oscillatory brain activity visible on an EEG that occurs during stage 2 of NREM sleep, thought to play a role in memory consolidation and synaptic plasticity.

Sympathetic Nervous System

A part of the autonomic nervous system that activates the body's flight-or-fight response during stress or danger.

Electrical Impulses

Rapid signals that travel along the nerves or muscle fibers, facilitating communication between different parts of the body or triggering muscle contractions.