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Warner Company Produces Flash Drives

question 3

Multiple Choice

Warner Company produces flash drives. The Custom division would like to buy 1,000,000 units from the Thumb Drive division, which currently has sufficient excess capacity. The units are normally sold for $9.99. The Thumb Drive division’s variable production cost per unit is $2.10, variable selling and administrative expenses are $.80 and fixed cost per unit are $1.65. The drives could be purchased from another company for $9.75. Both the Thumb Drive and the Custom divisions are operated as profit centers. If the company choses to use a cost-plus-based transfer price based on variable cost for the drives, what transfer price would the company use assuming a 50% markup?

Acknowledge the psychological concept of psychache and its significance in understanding the motives behind suicide.

Realize the risk factors and triggers for suicide among specific groups, including individuals with mental health challenges and adolescents.

Understand the primary differences between suicide prevention centers and online forums focused on suicide.

Identify biological factors that may contribute to suicide separate from depression.

Definitions:

Consolidated Earnings Per Share

A measure of a company's profitability that takes into account earnings from all of the entities it controls, presented on a per-share basis.

Acquisition-Date Fair Value

The fair value of an asset or liability measured at the date a business combination is effected.