Laissez Faire Has Two Divisions: the Cologne Division and the Bottle

question 6

Multiple Choice

Laissez Faire 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 maximum amount the Cologne Division would be willing to pay for each bottle transferred would be:

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

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Definitions:

Plasticity

(1) Range of modifiability of performance. (2) Modifiability, or “molding,” of the brain through experience.

Brain Growth

The process involving the increase in size and complexity of the brain; significant especially during childhood and adolescence.

Cognitive Growth

Refers to the development in one’s ability to think, solve problems, and understand complex concepts as they age.

Malnutrition

A condition that results from eating a diet in which nutrients are either not enough or are too much, causing health problems.