Figure 20-5
Allied Industries Has Two Divisions: the Bradley Division

question 10

Multiple Choice

Figure 20-5
Allied Industries has two divisions: the Bradley Division and the Rommel Division. Information about the component that the Bradley Division produces is as follows: $\begin{array}{lr}\text { Sales } & £ 180 \text { per unit } \\\text { Variable manufacturing costs } & £ 80 \text { per unit } \\\text { Fixed manufacturing overhead } & £ 50 \text { per unit } \\\text { Expected sales in units } & 10,000 \text { units }\end{array}$ The Bradley Division can produce up to 12,000 components per year. The Rommel Division needs 800 units of the component for a product it manufactures.
-Refer to Figure 20-5. The maximum transfer price that the Rommel Division would be willing to pay is

• A)£50.
• B)£80.
• C)£130.
• D)£180.

Familiarize with the definitions and applications of just-in-time inventory (JIT) and spread in financial management.

Understand the relationship between arousal and performance, including the inverted U theory and task complexity.

Recognize the role of evolutionary perspectives in emotional expressions and their modification by social learning.

Comprehend the concept of fundamental emotional patterns and evidence supporting innate emotional expressions across cultures.

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Definitions:

Distributors

Companies or agents responsible for delivering products from manufacturers to market, forming a vital part of the distribution channel.

Make-or-Buy Decision

A choice made by a company between manufacturing a product in-house or purchasing it from an external supplier.

Manufacturing Business

A company engaged in the industrial production of goods from raw materials using various processes, machinery, and operations.

Business Plans

Detailed documents outlining the strategy, goals, and operational plans of a business.