Use the Following Information for Questions

question 84

Multiple Choice

Use the following information for questions
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 is already operating at full capacity, what is the minimum transfer price it should accept?

• A)$0.58
• B)$0.66
• C)$0.28
• D)$0.34

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Definitions:

Optimal Level

The most favorable or advantageous degree of intensity or concentration for a specific function or activity.

Transference

A phenomenon in psychoanalysis where patients project feelings, attitudes, or desires onto their therapist, confusing the therapist with figures from their past.

Monoamine Oxidase

An enzyme responsible for breaking down neurotransmitters such as dopamine, norepinephrine, and serotonin in the brain.

Tricyclics

Tricyclics are a class of antidepressant drugs used primarily to treat major depressive disorder by affecting neurotransmitter levels in the brain.