WAX-D Inc Has a Division That Manufactures a Component That Sells

question 107

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 maximum transfer price if the division is operating below its capacity?

• A)$70
• B)$170
• C)$150
• D)$30

---

Definitions:

Latent Content

Unconscious underlying meanings of dreams and creative processes, distinct from the overt storyline or manifest content.

Sexual Content

Material in media or art that explicitly or implicitly relates to sexual themes, acts, or references.

Frequency

The number of occurrences of a repeating event per unit of time.

Sleep Spindles

Short bursts of brain activity that occur during stage 2 of non-REM sleep, thought to play a role in learning and memory.