Use the Following Information for Questions

question 129

Multiple Choice

Use the following information for questions
The Selling Division's unit sales price is $25 and its unit variable cost is $15. Its capacity is 10,000 units. Fixed costs per unit are $6. Current outside sales are 8,000 units.
-What is the Selling Division's opportunity cost per unit from selling 2,000 units to the Purchasing Division?

• A) $10
• B) $25
• C) $4
• D) $0

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Definitions:

Implied Covenant

A legal agreement that is not explicitly stated but is assumed to exist due to the nature of the transaction or relationship.

Employee Polygraph Protection Act

A federal law in the United States that prohibits most private employers from using lie detector tests, either for pre-employment screening or during the course of employment, with certain exceptions.

Labor Department

A government department responsible for overseeing labor practices, employment, and workplace safety standards, often involved in creating and enforcing labor laws.

Americans with Disabilities Act

A civil rights law that prohibits discrimination based on disability, requiring accessible facilities and reasonable accommodations in employment, public services, and telecommunications.