WAX-D Inchas a Division That Manufactures a Component That Sells for for $150

question 31

Multiple Choice

WAX-D Inc.has a division that manufactures a component that sells for $150 and has a variable cost of $45.Another division of the company wants to purchase the component.Fixed cost per unit of component is $25.What is the minimum transfer price if the division is operating below its capacity?

• A)$50
• B)$45
• C)$70
• D)$40

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Definitions:

Prepositions

Words that express relationships between nouns or pronouns and other elements in a sentence, typically indicating location, direction, time, or manner.

Propositional Tags

Linguistic devices that frame statements to indicate the speaker's attitude or the truth value of the statement.

Ambiguity

The quality of being open to more than one interpretation; inexactness or uncertainty in language or meaning.

Semantic Level

Pertaining to the meaning of words and language, especially the relationship between signifiers and what they signify or represent.