Use the Following Information to Answer Questions

question 28

Multiple Choice

Use the following information to answer questions
Division A produces a product that it sells to the outside market.It has compiled the following:
-Division B of the same company is currently buying an identical product from an outside provider for $38 per unit.It wishes to purchase 5,000 units per year from Division A.Division A is currently selling 25,000 units of the product per year.If the internal transfer is made, Division A will not incur any selling costs.At what price would the internal transfer occur?

• A)At the lowest price that is acceptable to Division A
• B)At the maximum price that is acceptable to Division B
• C)It depends on the negotiation skills of the division managers
• D)No transfer will occur

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Definitions:

Unified Paragraphs

A writing structure where ideas are well-connected within paragraphs, ensuring coherence and clarity.

Inverted Pyramid

A writing style often used in news articles where the most important information is presented at the beginning, followed by details in decreasing order of importance.

Micro Rests

Short periods of rest or relaxation that are integrated into a work schedule to improve focus and productivity.

Coherent Paragraph

A group of sentences that are logically connected and support a single main idea.