Use the Following Information for Questions

question 29

Multiple Choice

Use the following information for questions
The Selling Division's unit sales price is $25 and its unit variable cost is $15. Its capacity is 10,000 units. Fixed costs per unit are $6. Current outside sales are 8,000 units.
-What is the Selling Division's opportunity cost per unit from selling 3,000 units to the Purchasing Division?

• A) $10
• B) $25
• C) $4
• D) $0

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Definitions:

Indenture Agreement

A formal contract between a bond issuer and a bondholder that specifies the terms of the bond.

Call Provision

A feature of a bond that allows the issuer to repay the bond before its maturity date.

Debenture Agreement

A legal document that specifies the terms of a bond issue, promising repayment of borrowed money plus interest at fixed intervals.

Registration Form

A document required to officially register or enroll someone or something in a certain activity, event, or for the usage of a service.