Figure 20-5
Allied Industries Has Two Divisions: the Bradley Division

question 10

Multiple Choice

Figure 20-5
Allied Industries has two divisions: the Bradley Division and the Rommel Division. Information about the component that the Bradley Division produces is as follows: $\begin{array}{lr}\text { Sales } & £ 180 \text { per unit } \\\text { Variable manufacturing costs } & £ 80 \text { per unit } \\\text { Fixed manufacturing overhead } & £ 50 \text { per unit } \\\text { Expected sales in units } & 10,000 \text { units }\end{array}$ The Bradley Division can produce up to 12,000 components per year. The Rommel Division needs 800 units of the component for a product it manufactures.
-Refer to Figure 20-5. The maximum transfer price that the Rommel Division would be willing to pay is

• A)£50.
• B)£80.
• C)£130.
• D)£180.

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Definitions:

Pregnancy

The condition of carrying one or more embryos or fetuses within the female uterus.

Miscarriage

The spontaneous loss of a pregnancy before the fetus can survive outside the uterus, typically before 20 weeks of gestation.

Stillbirth

is the birth of an infant who has died in the womb after 20 weeks of pregnancy, before or during delivery.

Pregnancy Loss

The loss of a pregnancy before the fetus can survive outside the uterus, also known as miscarriage.