Timekeeper Corporation Has Two Divisions, Distribution and Manufacturing

question 112

Multiple Choice

Timekeeper Corporation has two divisions, Distribution and Manufacturing. The company's primary product is high-end watches. Each division's costs are provided below:

The Distribution Division has been operating at a capacity of 4,010,000 units a week and usually purchases 2,005,000 units from the Manufacturing Division and 2,005,000 units from other suppliers at $15.00 per unit.
What is the transfer price per watch from the Manufacturing Division to the Distribution Division, assuming the method used to place a value on each transfer is 125% of full costs?

• A) $11.49
• B) $14.36
• C) $15.00
• D) $19.25

---

Definitions:

Social Entrepreneur

An entrepreneur focused on creating and implementing solutions to social, cultural, or environmental issues, often with an emphasis on innovative and sustainable change.

Discretionary Stakeholders

Stakeholders who have a potential interest or investment in a project or business but their involvement is not critical.

Public Policies

Guidelines and principles adopted by governmental bodies to address societal issues.

Family Forms

The various structures and configurations that a family can take, including nuclear families, single-parent families, blended families, and extended families.