(Appendix 11A) Zeilinger Products, Inc

question 85

Multiple Choice

(Appendix 11A) Zeilinger Products, Inc., has a Screen Division that manufactures and sells a number of products, including a standard screen that could be used by another division in the company, the Home Security Division, in one of its products. Data concerning that screen appear below:
The Home Security Division is currently purchasing 8,000 of these screens per year from an overseas supplier at a cost of $58 per screen.
-What is the maximum price that the Home Security Division should be willing to pay for screens transferred from the Screen Division?

• A) $58 per unit
• B) $26 per unit
• C) $28 per unit
• D) $54 per unit

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Definitions:

Lean and Streamlined

Approaches or systems that are designed to maximize efficiency by eliminating waste and unnecessary processes.

Technology Control

The management and regulation of the development, application, and dissemination of technology.

Formal Authority

The power given to an individual or entity based on their position within an organization, enabling them to enforce rules and make decisions.

Bureaucracy

A systematic administrative system governing any large organization, characterized by fixed rules, hierarchy, and detailed procedures.