Answer the Following Questions Using the Information Below:
Bass Strait

question 54

Multiple Choice

Answer the following questions using the information below:
Bass Strait Oil Corporation has two divisions: Refining and Production.The company's primary product is Enkoil Oil.Each division's costs are provided below:
$$\begin{array} { l l r } \text { Production: } & \text { Variable costs per barrel of oil } & \$ 3 \\& \text { Fixed costs per barrel of oil } & \$ 2 \\\text { Refining: } & \text { Variable costs per barrel of oil } & \$ 10 \\& \quad \text { Fixed costs per barrel of oil } & \$ 12\end{array}$$
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 $20 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 110% of full costs?

• A)$5.50
• B)$24.20
• C)$29.70
• D)$22.00

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Definitions:

Cultural Racism

The belief that the cultural ways of one group are superior to those of another.

Norms

The unwritten rules or expectations that govern the behavior of members within a society or group, guiding what is considered acceptable or customary.

Institutional Racism

"The manipulation of social institutions to give preferences and advantages to Whites and at the same time restrict the choices, rights, mobility, and access of people of color."

Accountability

The obligation of an individual or organization to account for its activities, accept responsibility for them, and to disclose the results in a transparent manner.