Heart Company Has Two Divisions

question 86

Multiple Choice

Heart Company has two divisions.Division A is interested in purchasing 10,000 units from Division B.Capacity is available for Division B to produce these units.The per-unit market price is $30 per unit,with a variable cost of $25.The manager of Division A has offered to purchase the units at $22 per unit.In an effort to make this transfer price beneficial for the company as a whole,what is the range of prices that should be used during negotiations between the two divisions?

• A) $22 to $30
• B) $22 to $25
• C) over $30
• D) $25 to $30

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Definitions:

Career Attributes

Qualities or characteristics considered beneficial or essential for success in one's career.

Communicate

The act of sharing or exchanging information, thoughts, or messages through speech, writing, or other mediums.

Ethical Decisions

Choices made based on moral principles and values, ensuring fairness, integrity, and respect for all affected parties.

Nonverbal Cues

Body language and other forms of communication without the use of words, such as facial expressions, gestures, and posture.