(Appendix 11A) Division P of the Nyers Company Makes a Part

question 35

Multiple Choice

(Appendix 11A) Division P of the Nyers Company makes a part that can either be sold to outside customers or transferred internally to Division Q for further processing. Annual data relating to this part are as follows:
Division Q of the Nyers Company requires 15,000 units per year and is currently paying an outside supplier $33 per unit. Consider each part below independently.
-If outside customers demand 80,000 units,then according to the formula in the text,what is the lowest acceptable transfer price from the viewpoint of the selling division?

• A) $35 per unit
• B) $33 per unit
• C) $28 per unit
• D) $23 per unit

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Definitions:

Lateral Position

A body position where the person lies on their side, often used in medical settings for patients having difficulty breathing or to prevent aspiration.

Nursing Assistive Personnel

Health care workers who provide basic nursing care under the supervision of registered nurses or physicians.

Outcome

Condition of a patient at the end of treatment, including the degree of wellness and the need for continuing care, medication, support, counseling, or education.

Cerebellum

A part of the brain at the back of the skull in vertebrates, responsible for coordinating voluntary movements.