Use the Following Information for Questions 103 and 104

question 104

Multiple Choice

Use the following information for questions 103 and 104.
The Can Division of Fruit Products Inc. manufactures and sells tin cans externally for $0.60 per can. Its unit variable costs and unit fixed costs are $0.24 and $0.08, respectively. The Packaging Division wants to purchase 50,000 cans at $0.32 a can. Selling internally will save $0.02 a can.
-Assuming the Can Division has sufficient capacity, what is the minimum transfer price it should accept?

• A) $0.24
• B) $0.32
• C) $0.22
• D) $0.30

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Definitions:

You-Attitude

A communication approach focusing on the needs, interests, and concerns of the audience rather than the speaker's own perspective.

Positive Emphasis

The practice of focusing on positive aspects within communication to enhance message effectiveness.

Readability Formulas

Mathematical approaches used to assess the reading difficulty level of written text, often by evaluating sentence length and word complexity.

Objectively

In a way that is not influenced by personal feelings or opinions; considering facts only.