Ahart Products, Inc

question 61

Multiple Choice

Ahart Products, Inc., has a Transmitter Division that manufactures and sells a number of products, including a standard transmitter that could be used by another division in the company, the Remote Devices Division, in one of its products. Data concerning that transmitter appear below: The Remote Devices Division is currently purchasing 4,000 of these transmitters per year from an overseas supplier at a cost of $59 per transmitter.
Assume that the Valve Division is selling all of the valves it can produce to outside customers. Also assume that $3 in variable expenses can be avoided on transfers within the company due to reduced shipping and selling costs. What should be the minimum acceptable transfer price for the valves from the standpoint of the Valve Division?

• A) $59 per unit
• B) $61 per unit
• C) $47 per unit
• D) $58 per unit

---

Definitions:

Physical Disabilities

Physical disabilities are impairments that significantly restrict one or more of the major life activities, involving mobility or motor function.

Mental Disabilities

Conditions that affect a person's thinking, feeling, mood, or behavior, often impacting the ability to relate to others and function each day.

Americans with Disabilities Act

The Americans with Disabilities Act is a civil rights law that prohibits discrimination against individuals with disabilities in all areas of public life.

Americans with Disabilities Act

A civil rights law that prohibits discrimination against individuals with disabilities in all areas of public life.