RedEx Transport's Rail Division Has an Annual Capacity to Process

question 3

Multiple Choice

RedEx Transport's Rail Division has an annual capacity to process 800,000 tons of gravel used as a base under railroad tracks by railroads. The normal selling price is $62 per ton. At current operating levels, fixed costs are $10 per ton and variable costs are $32 per ton. The Air Division of RedEx Transport would like to buy 200,000 tons of gravel from the Rail Division to use in producing quality aggregate to be used for runways. The Rail Division is operating at 80 percent of capacity. The Air Division currently buys the gravel for $55 per ton from an outside source. How much is the lowest transfer price the Rail Division should accept to maintain current profitability?

• A) $55
• B) $32
• C) $62
• D) $30

Comprehend the historical and theoretical underpinnings of repressed memories.

Identify mechanisms through which false memories can be created.

Analyze the role of emotional experiences in memory formation and recall.

Evaluate the reliability of flashbulb memories compared to everyday memories.

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Definitions:

Consumer Demand

The desire of purchasers, consumers, or buyers for a particular good or service supported by the ability and willingness to pay for it.

Midpoint Formula

A method used in economics to calculate the elasticity of demand or supply, measuring the relative response to changes in price or income, based on the average of initial and final values.

Quantity Effect

The change in the quantity demanded or supplied as a result of changes in price, holding all else constant.

Price Effect

The impact on consumer demand and supply of goods or services caused by a change in the price of those goods or services.