Division E of Harveq Company Has the Capacity for Making

question 237

Multiple Choice

Division E of Harveq Company has the capacity for making 6,000 motors per month and regularly sells 5,400 motors each month to outside customers at a contribution margin of $54 per motor. The variable cost per motor is $41. Division F of Harveq Company would like to obtain 900 motors each month from Division E. What should be the lowest acceptable transfer price from the perspective of Division E?

• A) $59.00 per unit
• B) $54.00 per unit
• C) $41.00 per unit
• D) $18.00 per unit

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Definitions:

Drawing Test

A form of psychological or educational assessment where individuals are asked to draw something, used to gather insights into their cognitive, developmental, or emotional state.

Artistic

Relating to or characteristic of art or artists, often emphasizing creativity and expressive content.

Clinical Assessment

A detailed evaluation of an individual's physical, psychological, and emotional health, often using a combination of interviews, physical exams, and psychological tests.

Clinicians

Healthcare professionals involved in the direct care and treatment of patients, often within specialties like psychology, nursing, or medicine.