Use the Following Information for Questions

question 59

Multiple Choice

Use the following information for questions
Management of the Catering Company would like the Food Division to transfer 10,000 cans of its final product to the Restaurant Division for $30. The Food Division sells the product to customers for $70 per unit. The Food Division's variable cost per unit is $35 and its fixed cost per unit is $10.
-If the Food Division has 10,000 units available capacity, what is the minimum transfer price the Food Division should accept?

• A) $30
• B) $35
• C) $45
• D) $70

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Definitions:

Organizational Climate

The general perception or 'feel' of the workplace environment as perceived by employees, influenced by management practices, policies, and culture.

Stable

Characterizes something that is not likely to change or falter; having consistency or permanence.

Organizational Unfairness

Perceptions or experiences of inequity, bias, or injustice within a workplace or institution, often leading to dissatisfaction, demotivation, or conflict among employees.

Stress And Strain

In psychology, stress refers to the emotional and physical response to a demand or threat, while strain is the wear and tear the body experiences as a result of prolonged stress.