Captain Company Records Reveal the Following The Variable Costs of Division Y Will Be Incurred Whether

question 163

Multiple Choice

Captain Company records reveal the following: $\begin{array}{lr}\text { Division } \mathrm{X}\\\text { Market price of finished component to outsiders } & \$ 32 \\\text { Variable costs per component } & \underline{24} \\\text { Contribution margin per component } & \underline{\$ 8} \\\text { Total contribution for } 20,000 \text { components } & \$ 160,000\end{array}$

$\begin{array}{ll}\text { Division Y }\\\text {Sales price of finished product Variable costs: } & &&\$42 \\\text {Division X 1 component @ \$24) } & \\\text {Division Y } & &\$24 \\\text { Assembly} & \$9 \\\text { Packaging} & 4&13&-37 \\\text {Contribution margin per unit } & &&\$5 \\\text {Total contribution for 20,000 units } & &&\$100,000 \\\end{array}$
The variable costs of Division Y will be incurred whether it buys from Division X or from an outside supplier.The highest price that Division Y would want to pay Division X for the components would be _____.

• A)$24
• B)$8
• C)$32
• D)$22

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Definitions:

Social Solidarity

refers to (1) the degree to which group members share beliefs and values, and (2) the intensity and frequency of their interaction.

Social Status

The position or rank of a person or group within the societal hierarchy, based on factors like wealth, occupation, education, and family background.

Brutal Murder

An extremely violent and savage act of killing, often leaving the victim with severe bodily harm.

Justice System

A combination of institutions, laws, and practices designed to manage crime and enforce legal norms and regulations in society.