Part 7B Costs the Midwest Division of Frackle Corporation $30

question 49

Multiple Choice

Part 7B costs the Midwest Division of Frackle Corporation $30 to make, of which $21 is variable. Midwest Division sells Part 7B to other companies for $47. The Northern Division of Frackle Corporation can use Part 7B in one of its products. The Midwest Division has enough idle capacity to produce all of the units of Part 7B that the Northern Division would require. What is the lowest transfer price at which the Midwest Division should be willing to sell Part 7B to the Northern Division?

• A) $30
• B) $21
• C) $17
• D) $47
• E) $20

---

Definitions:

Client-Centered Therapy

An insight therapy that emphasizes providing a supportive emotional climate for clients, who play a major role in determining the pace and direction of their therapy.

Carl Jung

A Swiss psychiatrist and psychoanalyst who founded analytical psychology, known for concepts such as the collective unconscious and archetypes.

Aaron Beck

A psychiatrist and psychotherapist known for pioneering cognitive therapy and his influential work on depression.

Carl Rogers

An influential American psychologist who founded person-centered therapy, emphasizing the importance of a supportive and understanding environment for personal growth.