Division a Produces a Part with the Following Characteristics

question 210

Multiple Choice

Division A produces a part with the following characteristics: Division B,another division in the company,would like to buy this part from Division A.Division B is presently purchasing the part from an outside source at $28 per unit.If Division A sells to Division B,$1 in variable costs can be avoided.Suppose Division A is currently operating at capacity and can sell all of the units it produces on the outside market for its usual selling price.From the point of view of Division A,any sales to Division B should be priced no lower than:

• A)$27
• B)$29
• C)$20
• D)$28
• E)$21

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Definitions:

School Dropout

The act of leaving school before completing the educational program, which can be influenced by a variety of factors including socio-economic status, personal issues, or academic challenges.

Excessive School Absence

Missing an unusually large number of school days, often leading to academic, social, and developmental issues.

Adolescent Employment

The participation of teenagers in the workforce, which can provide them with income, work experience, and valuable life skills.

Value of Money

Represents the purchasing power of money, which can vary over time due to inflation or changes in the economy.