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:

Personal Power

The influence or authority an individual has over others, stemming from personal attributes or competencies.

Resistance

Opposition or reluctance to accept, comply with, or change in response to new ideas, changes, or leadership attempts.

Influence Attempt

Efforts made by an individual or group to change the attitudes, beliefs, or behaviors of another individual or group.

Higher Authority

Individuals or entities that hold superior power or influence within a hierarchy and can make significant decisions affecting those below them.