The Northern Division of Fiscar Corporation Sells Part X2 to Other

question 8

Multiple Choice

The Northern Division of Fiscar Corporation sells Part X2 to other companies for $87.20 per unit.According to the company's cost accounting system,the costs to Northern Division to make a unit of Part X2 are:
The Southern Division of Fiscar Corporation uses a part much like Part X2 in one of its products.The Southern Division can buy this part from an outside supplier for $79.95 per unit.However,the Southern Division could use Part X2 instead of this part that it purchases from outside suppliers.What is the most that the Southern Division would be willing to pay the Northern Division for Part X2?

• A) $87.20 per unit
• B) $62.60 per unit
• C) $58.10 per unit
• D) $79.95 per unit

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Definitions:

Nature

The inherent qualities or characteristics of an organism, or the physical world collectively, including plants, animals, the landscape, and other features and products of the earth.

Nurture

The influence of environmental factors like education, culture, and personal experiences on an individual's development.

Wilhelm Wundt

A German physician and psychologist who is widely recognized as the father of experimental psychology, founding the first formal laboratory for psychological research.

Sensory Stimulation

The process of activating one or more of the senses, such as sight, hearing, smell, taste, or touch.