Figure 20-4 the Simonds Division Produces a Component That Is Used by Used

question 46

Multiple Choice

Figure 20-4
The Simonds Division produces a component that is used by the Allen Division. The cost of manufacturing the component is as follows: ^aBased on a practical volume of 400,000 components
Other costs incurred by the Simonds Division are as follows: The component usually sells for £35 in the external market. The Simonds Division is capable of producing 500,000 components per year; however, only 400,000 components are expected to be sold next year. The variable selling expenses are avoidable if the component is sold internally.
The Allen Division has been buying the same component from an external supplier for £34 each. The Allen Division expects to use 50,000 units of the component next year. The manager of the Allen Division has offered to buy 50,000 units from the Simonds Division for £22.50 each.
-Refer to Figure 20-4. The minimum transfer price that the Simonds Division would accept is

• A) £25.
• B) £21.
• C) £20.
• D) £16.

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Definitions:

Tabular Layout

A design arrangement that organizes information in rows and columns, making it easy to read and compare.

Form Design Tools

A collection of software tools or features used to create digital forms for data entry, enabling customization of layout, fields, and functionality.

Query Design View

In database management systems, a graphical interface that allows users to create and modify database queries without needing to write SQL code directly.

Control Padding

The space between the contents of a control element and its boundary, affecting the layout and visual appearance of graphical user interface elements.