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

Identify the components and regions of the aggregate supply curve.

Grasp the fundamentals of classical economic theory, including the self-regulating nature of markets.

Understand the basic concepts and importance of emotions, moods, and affects in psychology.

Recognize the physiological and cognitive components of emotions and their significance in human behavior.

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Definitions:

Negative Income Tax

A fiscal mechanism designed to provide income to individuals or families whose earnings fall below a certain level, effectively supplementing their income through a government subsidy.

Taxes Owed

The amount of money that an individual, corporation, or other entity is legally obligated to pay to governmental authorities, typically calculated based on income, property value, or consumption.

Income Subsidy

A monetary assistance provided by the government to individuals or groups to increase their income level, often aimed at reducing poverty.

Redistributing Income

The transfer of income from certain individuals or groups to others through mechanisms like taxation, welfare programs, and social policies to achieve greater social equity.