Nanke Products,Inc

question 91

Multiple Choice

Nanke Products,Inc.,has a Sensor Division that manufactures and sells a number of products,including a standard sensor that could be used by another division in the company,the Safety Products Division,in one of its products.Data concerning that sensor appear below:
The Safety Products Division is currently purchasing 3,000 of these sensors per year from an overseas supplier at a cost of $59 per sensor.
Assume that the Sensor Division is selling all of the sensors it can produce to outside customers.What should be the minimum acceptable transfer price for the sensors from the standpoint of the Sensor Division?

• A) $37 per unit
• B) $59 per unit
• C) $20 per unit
• D) $64 per unit

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Definitions:

Negative Side Effects

Unintended and undesirable outcomes or reactions caused by a product or action.

Intrinsic Rewards

Internal satisfactions or motivations that come from within an individual, such as personal achievement or the joy of learning.

Purple

A color that is traditionally associated with royalty, nobility, luxury, power, and ambition.

Behavior Attention

The focus on and management of an individual's actions and responses to various situations or stimuli.