Figure 20-3 the Adam Division Produces a Component That Is Used by Used

question 37

Multiple Choice

Figure 20-3
The Adam Division produces a component that is used by the West Division. The cost of manufacturing the component is as follows: ^aBased on a practical volume of 250,000 components
Other costs incurred by the Adam Division are as follows: The component usually sells for £90 in the external market. The Adam Division is capable of producing 250,000 components per year; however, only 200,000 components are expected to be sold next year. The variable selling expenses are avoidable if the component is sold internally.
The West Division has been buying the same component from an external supplier for £80 each. The West Division expects to use 40,000 units of the component next year. The manager of the West Division has offered to buy 40,000 units from the Adam Division for £56 each.
-Refer to Figure 20-3. The maximum transfer price that the West Division would be willing to pay is

• A) £90.
• B) £60.
• C) £48.
• D) £38.

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Definitions:

Person-centered Therapy

A therapeutic approach that emphasizes the importance of an individual's subjective experience and intrinsic capacity for self-healing and personal growth.

Psychological Violence

Forms of violence that inflict emotional or mental harm, such as through intimidation, manipulation, harassment, or coercion.

Conditions of Worth

Standards imposed by others that one feels they must meet to be valued or accepted, often contributing to distorted self-image and emotional distress.

Person-centered Therapy

A form of psychotherapy developed by Carl Rogers that emphasizes the importance of the therapist’s congruence, empathy, and unconditional positive regard towards the client.