Figure 20-1
Universe Industries Has Two Divisions: the Haley Division

question 32

Multiple Choice

Figure 20-1
Universe Industries has two divisions: the Haley Division and the Comet Division. Information about a component that the Haley Division produces is as follows: $\begin{array}{lr}\text { Sales } & £ 120 \text { per unit } \\\text { Variable manufacturing costs } & £ 30 \text { per unit } \\\text { Fixed manufacturing overhead } & £ 20 \text { per unit } \\\text { Expected sales in units } & 4,000 \text { units }\end{array}$ The Haley Division can produce up to 5,000 components per year. The Comet Division needs 200 units of the component for a product it manufactures.
-Refer to Figure 20-1. If the selling division did NOT have excess capacity, the minimum transfer price the selling division would be willing to accept is

• A)£120.
• B)£75.
• C)£50.
• D)£30.

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Assessing

The act of evaluating or appraising a situation, person, or system to determine its conditions or value.

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Ford Products

Vehicles and automotive services produced by Ford Motor Company, including cars, trucks, and SUVs known for innovation and reliability.