Division M Makes a Part That It Sells to Customers

question 137

Multiple Choice

Division M makes a part that it sells to customers outside of the company.Data concerning this part appear below: Division O of the same company would like to use the part manufactured by Division M in one of its products.Division O currently purchases a similar part made by an outside company for $70 per unit and would substitute the part made by Division M.Division O requires 5,000 units of the part each period.Division M can sell every unit it produces on the outside market.What should be the lowest acceptable transfer price?

• A)$75
• B)$66
• C)$16
• D)$50
• E)$25

Recognize the limitations and criticisms of Piaget's theory of cognitive development.

Understand information-processing approaches to cognitive development and their focus on cognitive processes and strategies.

Understand how to calculate currency conversions involving large transactions.

Comprehend the concept of forward rates and how they are determined in the foreign exchange market.

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Definitions:

Objective Attributes

Measurable or factual features of a product or service, such as size, weight, or speed, which can be directly observed and quantified.

Subjective Attributes

Characteristics or features of a product or service that are based on personal opinions, tastes, or feelings rather than objective measures.

Temporal States

Conditions or states that are temporary and subject to change over time, often used in psychology and philosophy discussions.

Information Sources

Various means from which information can be obtained, including books, journals, websites, and expert interviews, among others.