Use the Following Information for Questions

question 30

Multiple Choice

Use the following information for questions
The Wood Division of Fir Products, Inc.manufactures wood mouldings and sells them externally for $110.Its variable cost is $40 per unit, and its fixed cost per unit is $14.Fir's president wants the Wood Division to transfer 5,000 units to another company division at a price of $54.
-Assuming the Wood Division has available capacity of 5,000 units, the minimum transfer price it should accept is

• A)$14.
• B)$40.
• C)$54.
• D)$110.

---

Definitions:

Effort and Output

The relationship between the level of effort applied by workers and the quantity of output produced as a result.

Low Effort

Low effort refers to minimal or inadequate application of energies or resources towards achieving a task or goal, often resulting in suboptimal performance.

Fire Protection Program

A comprehensive set of practices and systems designed to minimize the impact of fires, including prevention, containment, and emergency response.

Insurer

An entity that provides insurance, offering financial protection and compensation for specified losses, damages, illness, or death in exchange for payment of premiums.