(Appendix 11A) Bacot Products, Inc

question 51

Multiple Choice

(Appendix 11A) Bacot Products, Inc., has a Valve Division that manufactures and sells a number of products, including a standard valve that could be used by another division in the company, the Pump Division, in one of its products. Data concerning that valve appear below:
The Pump Division is currently purchasing 8,000 of these valves per year from an overseas supplier at a cost of $47 per valve.
-Assume that the Valve Division is selling all of the valves it can produce to outside customers.What should be the minimum acceptable transfer price for the valves from the standpoint of the Valve Division?

• A) $47 per unit
• B) $28 per unit
• C) $45 per unit
• D) $53 per unit

Recognize the importance of efficient scheduling in healthcare management.

Understand the importance and sources of high-quality evidence in literature for nursing research.

Recognize the purpose and significance of a literature review in the research process.

Identify and formulate quantitative research questions in clinical nursing settings.

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Definitions:

Variable Costs

Costs that change in proportion to the level of goods or services produced.

Fixed Costs

Expenses that do not change with the volume of production or sales, such as rent, salaries, and insurance premiums.

Competitive Pricing

Strategy that tries to reduce the emphasis on price competition by matching other companies’ prices and concentrating their own marketing efforts on the product, distribution, and promotional elements of the marketing mix.

Skimming Pricing

A pricing strategy that involves setting high prices initially and then gradually lowering them over time.