(Appendix 11A) Fingado Products, Inc

question 23

Multiple Choice

(Appendix 11A) Fingado Products, Inc., has a Detector Division that manufactures and sells a number of products, including a standard detector that could be used by another division in the company, the Commercial Security Division, in one of its products. Data concerning that detector appear below:
The Commercial Security Division is currently purchasing 6,000 of these detectors per year from an overseas supplier at a cost of $91 per detector.
-Assume that the Detector Division is selling all of the detectors it can produce to outside customers.What should be the minimum acceptable transfer price for the detectors from the standpoint of the Detector Division?

• A) $32 per unit
• B) $98 per unit
• C) $91 per unit
• D) $83 per unit

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Definitions:

Depression

Depression is a mental health disorder characterized by persistent feelings of sadness, hopelessness, and a lack of interest or pleasure in activities.

Antidepressant Medications

Drugs prescribed to treat depressive disorders, including major depressive disorder, dysthymia, and anxiety conditions, by altering the chemicals in the brain.

Short-Term Memory Loss

The inability or difficulty to remember recent events or information, typically temporary and not severe.

Severe Depression

Severe depression is a major depressive disorder characterized by intense symptoms that significantly impair one's ability to manage daily life activities.