Wigelsworth Products,Inc

question 96

Multiple Choice

Wigelsworth Products,Inc.,has a Sensor Division that manufactures and sells a number of products,including a standard sensor.Data concerning that sensor appear below:
The Safety Products Division of Wigelsworth Products,Inc needs 6,000 special heavy-duty sensors per year.The Sensor Division's variable cost to manufacture and ship this special sensor would be $32 per unit.Because these special sensors would requires more manufacturing resources than the standard sensor,the Sensor Division would have to reduce its production and sales of standard sensors to outside customers from 89,000 units per year to 79,400 units per year.
From the standpoint of the Sensor Division,what is the minimal acceptable transfer price for the special sensors for the Safety Products Division?

• A) $60.00 per unit
• B) $67.00 per unit
• C) $69.00 per unit
• D) $91.20 per unit

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Definitions:

Observe

The action of monitoring or taking notice of something, often leading to insights or data collection without directly interfering.

Conditions

The circumstances or factors affecting the way in which people live or work, especially with regard to their safety or well-being.

Self-Efficacy

An individual's belief in their own ability to complete tasks and achieve goals.

Individual's Estimate

The personal judgment or assessment made by an individual, often based on their own knowledge and experiences.