Examlex

Solved

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: 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 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?


Definitions:

Opportunity Cost

The worth of the best alternative option given up due to a decision made.

Production

The method of merging different material and immaterial inputs, such as plans and expertise, to produce something that can be consumed.

Opportunity Cost

The penalty for not embracing the immediate subsequent advantageous alternative when choosing.

Coffee

A brewed drink prepared from roasted coffee beans, which are the seeds of berries from the Coffea plant.

Related Questions