Retro Rides, Incorporated, Operates Two Divisions: (1) a Management Division

question 68

Multiple Choice

Retro Rides, Incorporated, operates two divisions: (1) a Management Division that owns and manages classic automobile rentals in Miami, Florida and (2) a Repair Division that restores classic automobiles in Clearwater, Florida. The Repair Division works on classic motorcycles, as well as other classic automobiles.
The Repair Division has an estimated variable cost of $28.50 per labor-hour and has a backlog of work for automobile restoration. They charge $48.00 per hour for labor, which is standard for this type of work. The Management Division complained that it could hire its own repair workers for $30.00 per hour, including leasing an adequate work area.
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What is the maximum transfer price per hour that the Management Division should pay?

• A) $28.50.
• B) $30.00.
• C) $39.00.
• D) $46.50.

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Definitions:

Cognitive-Behavioral

Relating to cognitive-behavioral therapy, a psychotherapeutic approach that addresses dysfunctional emotions, behaviors, and cognitions through a systematic process.

Crisis-Oriented

An approach or intervention specifically designed to address and manage a crisis or emergency situation, providing immediate support and strategies to cope.

Directive Therapy Relationship

A therapeutic approach where the therapist actively guides and provides specific directions to the patient to achieve therapeutic goals.

High Resistance

Refers to a scenario where an individual shows substantial opposition or difficulty in accepting or engaging with therapeutic techniques or interventions.