Figure 12-3 Quinn Has Capacity to Make 950,000 Zippers Per Year, but \\
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question 82

Multiple Choice

Figure 12-3 $\begin{array}{ll}\text { Direct materials } & \$ 0.23 \\\text { Direct labor } & \$ 0.20 \\\text { Variable overhead } & \$ 0.95 \\\text { Fixed overhead } & \$ 1.32 \\\text { Total } & \$ 2.70\end{array}$ Quinn has capacity to make 950,000 zippers per year, but due to a soft market, only plans to produce and sell 620,000 zippers next year. LeatherStuff currently buys zippers from an outside supplier for $3.50 each (the same price that Style receives) .
-Refer to Figure 12-4. Assume that Quinn allows negotiated transfer pricing. What is the ceiling of the bargaining range and which division sets it?

• A) $3.50; Style
• B) $3.50; LeatherStuff
• C) $2.70; Style
• D) $2.70; LeatherStuff
• E) $1.38; Style

Master the technique for writing effective routine business requests.

Know the guidelines for requesting professional references.

Understand the principles of conveying sympathy through condolence messages.

Understand the concept of nursing diagnoses and their application to patient care.

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Definitions:

Producer Surplus

The difference between what producers are willing to accept for a good or service versus what they actually receive, due to higher market prices.

Import Quota

A government-imposed limit on the quantity or value of goods that can be imported into a country, often used to protect domestic industries.

Tariff

A tax imposed on imported goods and services to increase their price and reduce competitiveness with domestic products.

Country

A defined geographic area or political unit acknowledged as a sovereign state.