Division S Sold a Part to Both Division P and Outside

question 41

Multiple Choice

Division S sold a part to both Division P and outside customers last year. The revenues from these sales were $30,000 (1,000 units) and $35,000 (1,000 units) , respectively. Next year, S plans to increase the unit sales price to $42 and wants a proportionate increase in the sales price to Division P. The unit costs are $9 variable and $15 fixed. If Division P does not agree to the price increase, 50% of Division S's fixed costs will be eliminated.
What is the highest price Division P would be willing to pay for external purchases?

• A) $30.00
• B) $36.00
• C) $16.50
• D) $28.50

Understand the structure and function of equilibrium-organizing organs within the inner ear.

Differentiate between the sensory mechanisms of static and dynamic equilibrium.

Recognize the functions and responses of various components within the vestibular system.

Identify the roles of otoliths and their location in the equilibrium process.

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Definitions:

Wages

Payments made to workers for their labor, usually calculated on an hourly, daily, or piecework basis.

Salaries

Salaries refer to the regular payments made by employers to employees, typically on a monthly or bi-weekly basis, in exchange for their labor or services.

Shutting Down

A short-term decision by a firm to cease production due to market conditions, typically when revenue does not cover variable costs.

Fixed Costs

These are business expenses that remain constant regardless of the level of goods or services produced, such as rent, salaries, and insurance premiums.