In the Bombadier Company, Division a Has a Product That

question 87

Multiple Choice

In the Bombadier Company, Division A has a product that can be sold either to outside customers or to Division B. Information about these divisions is given below: $\begin{array}{lrr}&\text {Case 1 }&\text {Case } 2\\\text { Division A: } & & \\\text { Capacity in units } & 100,000 & 100,000 \\\text { Number of units sold externally } & 100,000 & 60,000 \\\text { Market selling price } & \$ 90 & \$ 75 \\\text { Variable costs per unit } & 73 & 58 \\\text { Fixed costs per unit based on capacity } & 10 & 10\\\\\text { Division } B:\\\text { Number of units needed for production } & 40,000 & 40,000 \\\text { Purchase price per unit from external supplier } & \$ 91 & \$ 74\end{array}$ The company uses the opportunity cost approach to transfer pricing. Which case should not be transferred internally?

• A)Both should be transferred internally.
• B)Neither should be transferred internally.
• C)Case 1
• D)Case 2

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Definitions:

Young Children

Refers to the early stages of human development, typically considered from birth to around 8 years old.

Observation

Observation involves carefully watching, listening, and noting the phenomena or behavior studied as a method of gathering information for analysis.

Imitation

The act of copying the behavior, actions, or expressions of another individual.

Infant's Development

The physical, cognitive, emotional, and social changes that occur in human infants from birth to the end of the infant stage, roughly around age 2.