Steinhoff Products, Incorporated, Has a Sensor Division That Manufactures and Sells

question 168

Multiple Choice

Steinhoff Products, Incorporated, has a Sensor Division that manufactures and sells a number of products, including a standard sensor that could be used by another division in the company, the Safety Products Division, in one of its products. Data concerning that sensor appear below: The Safety Products Division is currently purchasing 4,000 of these sensors per year from an overseas supplier at a cost of $48 per sensor.What is the maximum price that the Safety Products Division should be willing to pay for sensors transferred from the Sensor Division?

• A) $51 per unit
• B) $37 per unit
• C) $48 per unit
• D) $14 per unit

---

Definitions:

Neuropsychological Assessment

A comprehensive evaluation of cognitive, behavioral, and emotional functions using a set of standardized tests and procedures, typically performed by a clinical neuropsychologist.

Mental Ability

The capacity to learn, reason, solve problems, and adapt to new situations, often assessed through intelligence testing.

Vocations

Occupations or careers especially regarded as a person's life's work or calling, influenced by their skills, interests, and passion.

Learning Disabilities

Neurologically-based processing problems that can interfere with learning basic skills such as reading, writing, or math, and can also hinder higher-level skills such as organization, time planning, abstract reasoning, long or short term memory, and attention.