Using the Formula in the Text, If the Lowest Acceptable

question 170

Multiple Choice

Using the formula in the text, if the lowest acceptable transfer price from the viewpoint of the selling division is $75 and the opportunity cost per unit on outside sales is $24, then the variable cost per unit must be:

• A) $24 per unit
• B) $99 per unit
• C) $51 per unit
• D) $75 per unit

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Definitions:

B. F. Skinner

An influential American psychologist known for his work in behaviorism, specifically the development of the theory of operant conditioning.

Wilhelm Wundt

Often considered the father of modern psychology, he established the first psychology laboratory at the University of Leipzig, marking the separation of psychology from philosophy.

Control Behaviour

Refers to the management or regulation of one's actions or reactions in various situations.

Humanist

A person who advocates for the values of human welfare, dignity, and rationalism, often emphasizing the importance of human values and concerns.