A Division Can Sell Externally for $60 Per Unit

question 104

Multiple Choice

A division can sell externally for $60 per unit. Its variable manufacturing costs are $35 per unit, and its variable marketing costs are $12 per unit. What is the opportunity cost of transferring internally, assuming the division is operating at capacity?

• A) $13.
• B) $25.
• C) $35.
• D) $47.

Recognize the implications of VALS segment characteristics on product and service choice.

Evaluate the effectiveness of the VALS framework in the context of consumer behavior and marketing strategies.

Understand the concept of market efficiency and its empirical challenges.

Recognize empirical evidence against the Law of One Price in various financial instruments and market anomalies.

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Definitions:

Patriarchal

Describing a societal structure or system in which men hold the majority of power and authority, particularly in the home and in the wider society.

Masculinity

A set of attributes, behaviors, and roles often associated with boys and men, shaped by social, cultural, and biological factors, and subject to evolving definitions.

Organizational Scholars

Experts or academics who study the behavior, design, and culture of organizations and how they operate.

Feminist Theory

A theoretical approach that seeks to understand and address inequality between genders, emphasizing the importance of gender as a foundation for social structure and the need for social change.