Use the Following Information for Questions

question 87

Multiple Choice

Use the following information for questions
The Wood Division of Fir Products, Inc. manufactures rubber moldings and sells them externally for $55. Its variable cost is $25 per unit, and its fixed cost per unit is $7. Fir's president wants the Wood Division to transfer 5,000 units to another company division at a price of $32.
-Assuming the Wood Division does not have any available capacity, the minimum transfer price it should accept is

• A) $7.
• B) $25.
• C) $32.
• D) $55.

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Definitions:

Bad Cholesterol

Commonly refers to low-density lipoprotein (LDL) cholesterol, which can accumulate in the walls of blood vessels and increase the risk of heart disease.

Artery Walls

The layers of tissue that form the outer structure of an artery, which carry oxygen-rich blood from the heart to the rest of the body.

Atherosclerosis

A disease in which plaque builds up inside arteries, leading to reduced blood flow and can result in heart attack, stroke, or other health issues.

Arteriosclerosis

The thickening, hardening, and loss of elasticity of the walls of arteries, which can restrict blood flow to organs and tissues.