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:

More Likely To Smoke

Refers to individuals or groups that have a statistically higher propensity or inclination towards using tobacco products compared to others.

Stereotype Threat

The risk of conforming to stereotypes about one's social group, which can negatively affect performance and behavior.

Prejudiced Attitude

A preconceived opinion that is not based on reason or actual experience, often directed towards people or groups based on characteristics such as race, sex, or religion.

Overcompensation

A psychological behavior where an individual attempts to make up for a perceived deficiency or weakness by emphasizing another trait or engaging in a different behavior excessively.