WAX-D Inc Has a Division That Manufactures a Component That Sells

question 107

Multiple Choice

WAX-D Inc. has a division that manufactures a component that sells for $150 and has a variable cost of $45. Another division of the company wants to purchase the component. Fixed cost per unit of component is $25. What is the maximum transfer price if the division is operating below its capacity?

• A)$70
• B)$170
• C)$150
• D)$30

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Definitions:

Mail Fraud

A type of legal offense involving the use of postal services to conduct fraudulent schemes.

Fraudulent Use of Transit

The fraudulent use of transit refers to any illegal actions involving the unauthorized access or use of public transportation systems, often leading to financial loss or damage to the system.

False Pretenses

Obtaining property or money from another person through fraudulent representations or lies.

Insider Trading

Insider trading involves buying or selling a publicly-traded company's stock by someone who has non-public, material information about that stock.