Answer the Following Question(s)using the Information Below

question 160

Multiple Choice

Answer the following question(s) using the information below.Beta Shoe Ltd.manufactures only one type of shoe and has two divisions, the Sole Division, and the Assembly Division.The Sole Division manufactures soles for the Assembly Division, which completes the shoe and sells it to retailers.The Sole Division "sells" soles to the Assembly Division.The market price for the Assembly Division to purchase a pair of soles is $20.(Ignore changes in inventory.) The per unit fixed costs are based on a production of 60,000 pairs of shoes.Sole's costs per pair of soles are:
Assembly's costs per completed pair of shoes are:

-What is the market-based transfer price per pair of soles from the Sole Division to the Assembly Division?

• A)$9
• B)$10
• C)$20
• D)$16
• E)$27

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Definitions:

Cohesive Groups

Groups characterized by strong interpersonal bonds among members, leading to high levels of cooperation and team effectiveness.

Informal Groups

Unofficial and emerge from relationships and shared interests among members.

Formal Groups

Officially recognised and supported by the organisation.

Group Dynamics

The psychological processes involving interactions, behaviors, attitudes, and roles that occur within a group setting.