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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

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Definitions:

Analyzing Audience

The process of examining and understanding the characteristics, needs, and preferences of the intended recipients of a message or product.

Effective Closing

This refers to the final part of a communication or presentation that is designed to reinforce the main message and motivate the audience to take a desired action.

Audience Interested

A group of individuals who show curiosity or engagement in a particular topic, event, or product.

Communication Skills

The ability to convey or exchange information effectively through various means, including verbal, non-verbal, written, and digital channels.