Crush Company Makes Internal Transfers at 155% of Full Cost

question 107

Multiple Choice

Crush Company makes internal transfers at 155% of full cost. The Soda Refining Division purchases 41,000 containers of carbonated water per day, on average, from a local supplier, who delivers the water for $58 per container via an external shipper. To reduce costs, the company located an independent supplier in Illinois who is willing to sell 41,000 containers at $38 each, delivered to Crush Company's Shipping Division in Missouri. The company's Shipping Division in Missouri has excess capacity and can ship the 41,000 containers at a variable cost of $12.50 per container. What is the total cost of purchasing the water from the Illinois supplier and shipping it to the Soda Division?

• A) $1,558,000
• B) $2,070,500
• C) $2,378,000
• D) $512,500

Troubleshoot issues related to hardware detection during the operating system installation.

Understand the concepts of open source software and its licensing.

Implement strategies to protect against zero-day and various attacks.

Perform operating system upgrades and ensure system compatibility.

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Definitions:

Maintenance Department

A functional area in a business dedicated to the upkeep, repair, and smooth operation of assets and equipment.

Direct Expenses

Costs that can be directly attributed to the production of goods or services, such as raw materials and labor.

Transfer Price

The price at which divisions of a company transact with each other, often used for the sale of goods or services within the company.

Variable Cost

Costs that vary directly with the level of production or sales, such as raw materials and direct labor.