(Appendix 11A) Fregozo Products, Inc

question 45

Multiple Choice

(Appendix 11A) Fregozo 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 8,000 of these connectors per year from an overseas supplier at a cost of $45 per connector.
-Assume that the Connector Division is selling all of the connectors it can produce to outside customers.What should be the minimum acceptable transfer price for the connectors from the standpoint of the Connector Division?

• A) $54 per unit
• B) $45 per unit
• C) $41 per unit
• D) $20 per unit

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Definitions:

Allele Typing

The process of determining the variations of genes at specific loci in the DNA sequence, used in genetic research and forensics.

Cystic Fibrosis

A genetic disorder that affects mostly the lungs, but also the pancreas, liver, kidneys, and intestine, leading to severe respiratory and digestive problems.

Lethal Genetic Defect

A genetic mutation that is directly responsible for causing death, often before birth.

Genetic Imprinting

A process by which certain genes are expressed in a parent-of-origin-specific manner.