(Appendix 11A) Royal Products, Inc

question 80

Multiple Choice

(Appendix 11A) Royal 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 6,000 of these connectors per year from an overseas supplier at a cost of $65 per connector.
-What is the maximum price that the Transmission Division should be willing to pay for connectors transferred from the Connector Division?

• A) $35 per unit
• B) $65 per unit
• C) $56 per unit
• D) $21 per unit

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Definitions:

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Items or entities that are commonly recognized by an individual due to repeated exposure or inherent knowledge.

Speedily Recognize

The capability to quickly and accurately identify objects, patterns, or situations, often important in decision-making processes.

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The simultaneous use of multiple compute resources to perform computational tasks more efficiently.

Simultaneously Process

The cognitive ability to handle or assess multiple streams of information or tasks at the same time.