Answer the Following Questions Using the Information Below

question 18

Multiple Choice

Answer the following questions using the information below:
Greenlawn Corporation has two divisions, Distribution and Production. The company's primary product is fertilizer. Each division's costs are provided below:
The Distribution Division has been operating at a capacity of 4,000,000 pounds a week and usually purchases 2,000,000 pounds from the Production Division and 2,000,000 pounds from other suppliers at $0.90 per pound.
-What is the transfer price per barrel from the Production Division to the Distribution Division, assuming the method used to place a value on each pound of fertilizer is 160% of variable costs?

• A)$0.10
• B)$0.22
• C)$0.16
• D)$0.80

---

Definitions:

Zoho Writer

An online word processor offered by the Zoho Corporation that allows users to create, edit, and share documents online.

OpenOffice Writer

A word processor component of the OpenOffice suite, used for creating, editing, and managing documents.

Internet Connection

A setup that allows computers and other devices to access the World Wide Web and other services over the internet, through various means like Wi-Fi, mobile networks, or broadband.

Graphics App

A software tool designed for creating, editing, or managing digital images and graphics.