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Delemos Products,Inc

question 40

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Delemos Products,Inc.,has a Transmitter Division that manufactures and sells a number of products,including a standard transmitter.Data concerning that transmitter appear below:
Delemos Products,Inc.,has a Transmitter Division that manufactures and sells a number of products,including a standard transmitter.Data concerning that transmitter appear below:   The Remote Devices Division of Delemos Products,Inc needs 6,000 special heavy-duty transmitters per year.The Transmitter Division's variable cost to manufacture and ship this special transmitter would be $66 per unit.Because these special transmitters would requires more manufacturing resources than the standard transmitter,the Transmitter Division would have to reduce its production and sales of standard transmitters to outside customers from 83,000 units per year to 76,400 units per year. From the standpoint of the Transmitter Division,what is the minimal acceptable transfer price for the special transmitters for the Remote Devices Division? A)  $90.00 per unit B)  $98.00 per unit C)  $104.00 per unit D)  $107.80 per unit The Remote Devices Division of Delemos Products,Inc needs 6,000 special heavy-duty transmitters per year.The Transmitter Division's variable cost to manufacture and ship this special transmitter would be $66 per unit.Because these special transmitters would requires more manufacturing resources than the standard transmitter,the Transmitter Division would have to reduce its production and sales of standard transmitters to outside customers from 83,000 units per year to 76,400 units per year.
From the standpoint of the Transmitter Division,what is the minimal acceptable transfer price for the special transmitters for the Remote Devices Division?

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Definitions:

F-Ratio

A statistical measure used in the context of ANOVA, calculated as the variance between sample means divided by the variance within the samples.

Main Effect

The direct impact of an independent variable on a dependent variable in an experimental design, ignoring interaction effects.

Factor A

A term used in experimental design and analysis to denote one of potentially several independent variables being studied for its impact on a dependent variable.

Null Hypothesis

A statement in statistical analysis that proposes there is no significant difference or effect, intended to be tested against an alternative hypothesis.

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