Use the Following Information to Answer the Following Questions

question 8

Multiple Choice

Use the following information to answer the following Questions
Genesis Scents has two divisions: the Cologne Division and the Bottle Division. The Bottle Division produces containers that can be used by the Cologne Division. The Bottle Division's variable manufacturing cost is $2, shipping cost is $0.10, and the external sales price is $3. No shipping costs are incurred on sales to the Cologne Division, and the Cologne Division can purchase similar containers in the external market for $2.60.
-The Bottle Division has sufficient capacity to meet all external market demands in addition to meeting the demands of the Cologne Division. Using the general rule, the transfer price from the Bottle Division to the Cologne Division would be:

• A) $2.00.
• B) $2.10.
• C) $2.60.
• D) $2.90.
• E) $3.00.

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Definitions:

Reaction Formation

A defense mechanism where an individual unconsciously replaces unacceptable impulses with their opposites, often resulting in exaggerated behavior.

Unconscious Awareness

The state of having processes in the mind that occur without conscious perception, influencing thoughts, feelings, or actions.

Id

A component of personality in psychoanalytic theory, it represents the instinctual drives and is the source of basic impulses and desires.

Ego

The part of the psyche in psychoanalysis that deals with reality, operating on the reality principle and mediating between the desires of the id and the morals of the superego.