Use the Following Information for the Next 2 Questions

question 67

Multiple Choice

Use the following information for the next 2 questions.
The Machining Division has a capacity of 2,000 units. Its sales and cost data are:
-The Machining Division is currently selling 1,900 units to outside customers, and the Assembly Division wants to purchase 300 units from Machining. If the transaction takes place, the variable administrative costs per unit on the units transferred to Assembly will be $2/unit, not $5/unit. What should be the transfer price?

• A) $73.67
• B) $76.67
• C) $97.00
• D) $100.00

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Definitions:

Vegetarian

A dietary practice of abstaining from the consumption of meat and sometimes, by extension, other animal products.

Regression Discontinuity

Regression discontinuity identifies the causal effects of a policy or factor by looking at two samples that lie on either side of a threshold or cutoff.

Causal Effects

Causal effects refer to the change in an outcome directly attributable to a change in a factor or intervention, established through methods that isolate this relation from other variables.

Threshold

The point at which a particular effect or change occurs, often used in context of quantities or levels.