Materials Used by Meeta-Products Inc

question 25

Multiple Choice

Materials used by Meeta-Products Inc.in producing Division A's product are currently purchased from outside suppliers at a cost of $12 per unit.However, the same materials are available from Division B.Division B has unused capacity and can produce the materials needed by Division A at a variable cost of $7 per unit.A transfer price of $9 per unit is established, and 35,000 units of material are transferred with no reduction in Division B's current sales. How much would Meeta-Products total operating income increase?

• A) $70,000
• B) $175,000
• C) $105,000
• D) $100,000

Acknowledge the relevance of treatment choice based on the nature of the problem and the evidence on therapeutic outcomes.

Understand the concept of nonverbal communication and its gender differences.

Recognize and explain the sociological criteria for groups and group membership.

Comprehend the social construction of reality and its implications in everyday life.

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Definitions:

Economic Profit

The difference between total revenue and total costs, including both explicit and implicit costs, thereby factoring in opportunity costs.

Normal Profit

The level of profit that is necessary for a company to remain competitive in the market, often considered as the minimum return required to cover opportunity costs.

Mass Customisation

A manufacturing and marketing strategy that combines mass production efficiency with personalized customization to meet individual customer preferences.

Continuous-Process Production

Raw materials are continuously transformed by an automated system.