Toldness Products,Inc

question 78

Multiple Choice

Toldness Products,Inc.,has a Connector Division that manufactures and sells a number of products,including a standard connector that could be used by another division in the company,the Transmission Division,in one of its products.Data concerning that connector appear below:
The Transmission Division is currently purchasing 11,000 of these connectors per year from an overseas supplier at a cost of $58 per connector.
What is the maximum price that the Transmission Division should be willing to pay for connectors transferred from the Connector Division?

• A) $51 per unit
• B) $58 per unit
• C) $22 per unit
• D) $29 per unit

---

Definitions:

Joseph Schumpeter

An economist and political scientist who proposed the theory of creative destruction in economics.

New Businesses

New businesses are entities in their early stages of operation, often characterized by innovation, development of products or services, and efforts to secure market position.

Small Business Characteristics

Pertains to features that define small businesses, such as limited revenue and workforce size, often centered around personalized service and local operation.

Market Research

The activity of gathering information about consumers' needs and preferences to identify market trends and potential areas of opportunity for businesses.