Sandler Company Makes Internal Transfers at 180% of Full Cost

question 140

Multiple Choice

Sandler Company makes internal transfers at 180% of full cost.The Soda Refining division purchases 30,000 containers of carbonated water per day, on average, from a local supplier who delivers the water for $32 per container via an external shipper.To reduce costs, the company located an indepen?dent producer in Ohio who is willing to sell 30,000 containers at $20 each, delivered to Sandler Company's shipping division in Ohio.The company's Shipping Division in Ohio has excess capacity and can ship the 30,000 containers at a variable cost of $2.50 per container._____ is the total cost to Sandler Company if the carbonated water is purchased from the local supplier.

• A)$960,000
• B)$1,200,000
• C)$1,501,000
• D)$1,620,000

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Definitions:

Diffusion

The process by which molecules move from an area of higher concentration to an area of lower concentration.

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The predominant cell type in the epidermis, responsible for the production of keratin, a protein that helps protect the skin.

Epidermis

The epidermis is the outermost layer of the skin, providing a protective barrier against environmental damages, such as pathogens and UV radiation.