Answer the Following Question(s)using the Information Below

question 95

Multiple Choice

Answer the following question(s) using the information below:
Greenlawn Ltd.has two divisions, Distribution and Production.The company's primary product is fertilizer.Each division's costs are provided below:
The Distribution Division has been operating at a capacity of 4,000,000 kilograms a week and usually purchases 2,000,000 kilograms from the Production Division and 2,000,000 kilograms from other suppliers at $0.45 per kilogram.
-What is the transfer price per kilogram from the Production Division to the Distribution Division, assuming the method used to place a value on each kilogram of fertilizer is 160% of variable costs?

• A)$0.05
• B)$0.11
• C)$0.08
• D)$0.40
• E)$0.48

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Definitions:

Parental Neglect

A form of child abuse where a parent or guardian fails to provide the basic needs or appropriate care for their child.

Early

Occurring or done before the usual or expected time, typically referring to a point in time closer to the beginning of a period or sequence.

Gender Typing

The process by which children acquire the values, motives, and behaviors considered appropriate for their gender in their culture.

Masculine

Qualities, attributes, or roles traditionally associated with men and boys, often contrasted with feminine traits.