(Appendix 11A) Steinhoff Products, Inc

question 50

Multiple Choice

(Appendix 11A) Steinhoff Products, Inc., has a Sensor Division that manufactures and sells a number of products, including a standard sensor that could be used by another division in the company, the Safety Products Division, in one of its products. Data concerning that sensor appear below:
The Safety Products Division is currently purchasing 4,000 of these sensors per year from an overseas supplier at a cost of $48 per sensor.
-What is the maximum price that the Safety Products Division should be willing to pay for sensors transferred from the Sensor Division?

• A) $51 per unit
• B) $37 per unit
• C) $48 per unit
• D) $14 per unit

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Definitions:

Spelling

Spelling is the act of forming words correctly from their constituent letters, according to agreed conventions.

Mnemonic

A learning technique that aids in memory retention or retrieval by associating complex information with simple patterns, phrases, or acronyms.

Sensory Memory

The shortest-term element of memory that acts as a buffer for stimuli received through the senses; a type of storage that holds sensory information very briefly.

Semantically

Semantically refers to the relation of something to the meaning or interpretation of words, phrases, signs, or symbols, rather than their form.