The Northern Division of Fiscar Corporation Sells Part X2 to Other

question 97

Multiple Choice

The Northern Division of Fiscar Corporation sells Part X2 to other companies for $87.20 per unit. According to the company's cost accounting system, the costs to Northern Division to make a unit of Part X2 are: The Southern Division of Fiscar Corporation uses a part much like Part X2 in one of its products. The Southern Division can buy this part from an outside supplier for $79.95 per unit. However, the Southern Division could use Part X2 instead of this part that it purchases from outside suppliers. What is the most that the Southern Division would be willing to pay the Northern Division for Part X2?

• A) $87.20 per unit
• B) $62.60 per unit
• C) $58.10 per unit
• D) $79.95 per unit

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Definitions:

Conventional Health Care

A system of medicine based on the diagnosis and treatment of diseases by doctors, especially with medication or surgery, as distinct from alternative and traditional medicines.

Body-mind Interaction

The influence that the physiological state can have on the mental processes and vice versa, highlighting the interconnectedness of physical and psychological health.

Natural Substances

Organic materials found in nature that can be used for therapeutic purposes, including plants, minerals, and animal products.

Health Care Provider

A professional who offers services aimed at maintaining or improving people’s health, which can include doctors, nurses, therapists, and others.