(Appendix 11A) Division a of Tripper Company Produces a Part

question 56

Multiple Choice

(Appendix 11A) Division A of Tripper Company produces a part that it sells to other companies. Sales and cost data for the part follow:
Division B, another division of Tripper Company, would like to buy this part from Division A. Division B is presently purchasing the part from an outside source at $38 per unit. If Division A sells to Division B, $1 in variable costs can be avoided.
-Assume that Division A is presently operating at capacity.According to the formula in the text,what is the lowest acceptable transfer price from the viewpoint of the selling division?

• A) $37 per unit
• B) $39 per unit
• C) $36 per unit
• D) $38 per unit

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Definitions:

Values And Attitudes

Deeply held beliefs and feelings that influence an individual's choices and behaviors.

Interest And Attentiveness

The state of wanting to learn more about something or someone, combined with the quality of giving close and continuous attention.

Morphed Faces

Digitally combined images of two or more faces to create a new, composite facial appearance.

Experimental Images

Pictures or visuals used in experiments to study cognitive and emotional responses.