Ahart Products, Incorporated, Has a Transmitter Division That Manufactures and Sells

question 169

Multiple Choice

Ahart Products, Incorporated, has a Transmitter Division that manufactures and sells a number of products, including a standard transmitter that could be used by another division in the company, the Remote Devices Division, in one of its products. Data concerning that transmitter appear below: The Remote Devices Division is currently purchasing 4,000 of these transmitters per year from an overseas supplier at a cost of $59 per transmitter.What is the maximum price that the Remote Devices Division should be willing to pay for transmitters transferred from the Transmitter Division?

• A) $8 per unit
• B) $50 per unit
• C) $59 per unit
• D) $42 per unit

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Definitions:

Aptitude

Aptitude refers to a natural ability or skill at performing a certain type of task or learning certain types of information.

Compensating Differentials

Differences in wages that result from differences in working conditions. Risky jobs usually pay higher wages; highly desirable jobs usually pay lower wages.

Annual Salary

Annual Salary is the fixed amount of money or compensation paid to an employee by an employer over a year for their services.

Occupational Segregation

The distribution of people across and within occupations and jobs, based significantly on demographic characteristics, notably gender or race.