(Appendix 11A) Oberley Products, Inc

question 15

Multiple Choice

(Appendix 11A) Oberley Products, Inc., has a Receiver Division that manufactures and sells a number of products, including a standard receiver that could be used by another division in the company, the Industrial Products Division, in one of its products. Data concerning that receiver appear below:
The Industrial Products Division is currently purchasing 5,000 of these receivers per year from an overseas supplier at a cost of $58 per receiver.
-What is the maximum price that the Industrial Products Division should be willing to pay for receivers transferred from the Receiver Division?

• A) $52 per unit
• B) $19 per unit
• C) $58 per unit
• D) $33 per unit

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Definitions:

Job Specifications

A detailed description of the qualifications, skills, and experience required to perform a specific job.

Abilities

The natural or acquired skills and talents that individuals possess, which enable them to perform specific tasks effectively.

Human Capital Stock

The collective skills, knowledge, and abilities that employees bring to their workplace, considered an asset to the organization.

Specific Form

A particular or distinct shape, version, or type of something, often referring to documents or structures.