Zeilinger Products, Incorporated, Has a Screen Division That Manufactures and Sells

question 171

Multiple Choice

Zeilinger Products, Incorporated, has a Screen Division that manufactures and sells a number of products, including a standard screen that could be used by another division in the company, the Home Security Division, in one of its products. Data concerning that screen appear below: The Home Security Division is currently purchasing 8,000 of these screens per year from an overseas supplier at a cost of $58 per screen.Assume that the Valve Division is selling all of the valves it can produce to outside customers. From the standpoint of the Valve Division, what is the lost contribution margin if the valves are transferred internally rather than sold to outside customers?

• A) $88,000
• B) $392,000
• C) $1,480,000
• D) $296,000

---

Definitions:

Vital Sign Measurements

Clinical assessments of basic body functions, typically including temperature, heart rate, breathing rate, and blood pressure.

Mean Arterial Pressure (MAP)

The average pressure in a patient's arteries during one cardiac cycle, crucial for ensuring adequate blood flow to the organs.

Cardiac Cycle

The sequence of events in the heart during one heartbeat, including contraction and relaxation phases.