Answer the Following Question(s)using the Information Below

question 7

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 120% of full costs?

• A)$0.30
• B)$0.36
• C)$0.45
• D)$0.55
• E)$0.42

---

Definitions:

Milgram's Study

An experiment focusing on the conflict between obedience to authority and personal conscience.

Shock

A sudden and often intense disturbance of the mind, emotions, or sensibility, typically resulting from an unexpected event or experience.

Stanley Milgram

A psychologist famous for his experiments on obedience, demonstrating that people are willing to obey authority figures even when it involves harming others.

Obedience Study

A series of experiments conducted by Stanley Milgram, measuring the willingness of study participants to obey an authority figure who instructed them to perform acts conflicting with their personal conscience.