Ganus Products, Incorporated, Has a Relay Division That Manufactures and Sells

question 276

Multiple Choice

Ganus Products, Incorporated, has a Relay Division that manufactures and sells a number of products, including a standard relay that could be used by another division in the company, the Electronics Division, in one of its products. Data concerning that relay appear below: The Electronics Division is currently purchasing 7,000 of these relays per year from an overseas supplier at a cost of $59 per relay.Assume that the Valve Division is selling all of the valves it can produce to outside customers. Also assume that $4 in variable expenses can be avoided on transfers within the company due to reduced shipping and selling costs. Does there exist a transfer price that would make both the Valve and Pump Division financially better off than if the Pump Division were to continue buying its valves from the outside supplier?

• A) No, the selling division's price to outside customers is higher than the price that the buying division has to pay its outside supplier.
• B) The answer cannot be determined from the information that has been provided.
• C) Yes, the minimum transfer price that the selling division should be willing to accept is less than the maximum transfer price that the buying division would accept. Both divisions would be financially better off if the transfers were to take place.
• D) Yes, both divisions are always better off regardless of whether the selling division has enough idle capacity to handle all of the buying division's needs.

Apply correct comma usage in dates, addresses, and titles.

Distinguish when commas are necessary for clarity versus when they are optional or incorrect.

Relate comma usage to the meaning and clarity of a sentence, enhancing readability.

Grasp the historical and practical importance of punctuation in written communication.

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Definitions:

School Records

Official documents and files that contain a history of a student's academic performance, attendance, and sometimes behavior at school.

Single-parent Households

Family units consisting of one parent living with his or her children, emphasizing the parent's sole caretaking role.

Two Parents

The term "two parents" refers to a family structure comprising two individuals who are the primary caregivers and guardians of their child or children.

Cultural Reciprocity

A practice in which there is an exchange of cultural viewpoints and insights, often aimed at achieving better understanding and cooperation among different cultural groups.