Management of the Catering Company Would Like the Food Division

question 34

Multiple Choice

Management of the Catering Company would like the Food Division to transfer 10,000 cans of its final product to the Restaurant Division for $30.The Food Division sells the product to customers for $70 per unit.The Food Division's variable cost per unit is $35 and its fixed cost per unit is $10.
-If the Food Division is currently operating at full capacity, what is the minimum transfer price the Food Division should accept?

• A)$30
• B)$35
• C)$45
• D)$70

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Definitions:

Efficiency Wages

Above-equilibrium wages paid by firms to increase worker productivity.

Government-Run Employment Agencies

Public institutions designed to help individuals find jobs and employers to find suitable candidates, often providing additional services like career counseling and training.

Public Training Programs

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The effectiveness with which individuals can find suitable employment, often influenced by factors like skill levels, market conditions, and search methods.