You Have Been Provided with the Following Information for the Wool

question 69

Multiple Choice

You have been provided with the following information for the Wool Division of a decentralized company:
$$\begin{array} { l l} \text { Selling price } & \$ 45 \\\text { Variable cost per unit } & \$ 33 \\\text { Fixed cost per unit } & \$ 12 \\\text { Sales volume (units) } & 22,500 \\\text { Capacity (units) } & 25,000\end{array}$$
The Blanket Division would like to purchase all of its units internally. The Blanket Division needs 6,000 units each period and currently pays $42 per unit to an outside firm. Assuming that the Blanket Division wants to use a sole supplier and will not purchase less than 6,000 from a supplier, what is the lowest price that Wool Division should accept from the Blanket Division?

• A) $45.
• B) $42.
• C) $40.
• D) $38.

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Definitions:

Place Theory

A proposal about pitch perception stating that regions of the basilar membrane respond to particular sound frequencies, and the nervous system interprets the excitation from different basilar regions as different pitches.

Oval Window

A membrane-covered opening that leads from the middle ear to the cochlea of the inner ear, playing a crucial role in the process of hearing.

Cochlea

A spiral-shaped, fluid-filled inner ear structure that is essential for converting sound waves into electrical signals that can be interpreted by the brain as sound.

Waves

are disturbances or variations that travel through a medium, such as air, water, or vacuum, transferring energy from one point to another without permanent displacement of the particles of the medium.