Wetherald Products, Inc

question 65

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 Valve Division is selling all of the valves it can produce to outside customers. Also assume that $5 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) $77 per unit
• B) $74 per unit
• C) $59 per unit
• D) $82 per unit

---

Definitions:

Weight Loss

The reduction of total body mass due to factors such as decreased fluid, fat, or lean mass, often pursued for health or aesthetic reasons.

Sleep

A naturally recurring state of mind and body characterized by altered consciousness, relatively inhibited sensory activity, and inhibition of nearly all voluntary muscles.

Depressive Disorder

A group of conditions characterized by persistent feelings of sadness and hopelessness and a lack of interest or pleasure in nearly all activities, often accompanied by physical symptoms and impaired functioning.

Impulsive Behaviour

Actions performed suddenly without apparent thought, reflecting a lack of control over emotional or cognitive processes.