Use the Information Below to Answer the Following Question(s)

question 12

Multiple Choice

Use the information below to answer the following question(s) .Soft Cushion Company is highly decentralized.Each division is empowered to make its own sales decisions.The Assembly Division can purchase cushion stuffing from the Production Division or from external suppliers.The Production Division has been the major supplier of stuffing in recent years.The Assembly Division has announced that two external suppliers will be used to purchase the stuffing at $20 per kilogram for the next year.The Production Division recently increased its unit price to $40.The manager of the Production Division presented the following information; variable cost $32, fixed cost $8, to top management in order to attempt to force the Assembly Division to purchase the stuffing internally.The Assembly Division purchases 20,000 kg per month.
-The seller of product A has no idle capacity and can sell all it can produce at $20 per unit.Outlay cost is $4.What is the opportunity cost assuming the seller sells internally?

• A)$4
• B)$16
• C)$20
• D)$24
• E)$44

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Definitions:

Immigrant

A person who moves to a country other than their native country to live, often for reasons such as employment, better living conditions, or family reunification.

Physician

A health care professional who prevents, diagnoses, and treats human illness and assists in rehabilitation after the onset of disease or injury.

Signs of Disease

Observable indications or symptoms that may suggest the presence of a medical condition or illness.

Clinical Model

A model that views people as physiological systems with related functions, and health is identified by the absence of signs and symptoms of disease or injury.