Answer the Following Question(s)using the Information Below

question 126

Multiple Choice

Answer the following question(s) using the information below.Delta Footwear Ltd.manufactures only one type of sandal and has two divisions, the Sole Division, and the Assembly Division.The Sole Division manufactures soles for the Assembly Division, which completes the sandal and sells it to retailers.The Sole Division "sells" soles to the Assembly Division.The market price for the Assembly Division to purchase a pair of soles is $18.(Ignore changes in inventory.) The per unit fixed costs are based on a production of 50,000 pairs of sandals.Sole's costs per pair of soles are:
Assembly's costs per completed pair of sandals are:

-What is the transfer price per pair of sandals from the Sole Division to the Assembly Division if the method used to place a value on each pair of soles is 150% of variable costs?

• A)$18.00
• B)$19.50
• C)$13.50
• D)$16.50
• E)$7.50

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Definitions:

Operant Behavior

Behavior that is controlled by its consequences, including rewards and punishments.

Secondary Conditioning

A phenomenon in classical conditioning where a stimulus that becomes conditioned as a CS is used to condition a new stimulus.

Spontaneous Recovery

A phenomenon in conditioning where a previously extinguished response re-emerges after a period of no exposure to the conditioned stimulus.

Respondent Behavior

A type of behavior that occurs in response to specific stimuli and is conditioned by the environment, as seen in classical conditioning.