Answer the Following Questions Using the Information Below

question 11

Multiple Choice

Answer the following questions using the information below:
Penn Oil Corporation has two divisions, Refining and Production. The company's primary product is Luboil Oil. Each division's costs are provided below:
The Refining Division has been operating at a capacity of 40,000 barrels a day and usually purchases 25,000 barrels of oil from the Production Division and 15,000 barrels from other suppliers at $60 per barrel.
-What is the transfer price per barrel from the Production Division to the Refining Division, assuming the method used to place a value on each barrel of oil is 180% of variable costs?

• A)$16.20
• B)$27.00
• C)$54.00
• D)$70.20

Understand and apply the concept of real versus nominal exchange rates in international economic analysis.

Evaluate opportunities for arbitrage in international markets.

Understand the dynamics and implications of international capital flows and investments.

Understand the evolving dynamics and expectations in marital roles and relationships.

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Definitions:

Authorized Agent

An individual or organization legally empowered to act on behalf of another person or entity.

Discharge of Liability

The release of a debtor from the obligation to repay a debt, either through payment of the debt, through legal processes, or by agreement with the creditor.

Real Defenses

Legitimate legal defenses that can be asserted regardless of the contract's validity, often used in negotiating or contesting payment obligations.

Warrants

Financial instruments that give the holder the right to purchase the company's stock at a specified price before the expiration date.