Katsen Company Can Sell Its Products to an External Market

question 2

Multiple Choice

Katsen Company can sell its products to an external market for $150 per unit.The division's variable manufacturing costs are $45 per unit and fixed manufacturing costs are $9 per unit.If the division is operating at full capacity,what would be the opportunity cost of selling internally?

• A)$150
• B)$45
• C)$96
• D)$105
• E)None of the answer choices is correct.

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Definitions:

Extreme Value Offers

Promotions or sales offering products or services at exceptionally low prices, often to attract a significant number of customers or clear out inventory.

Merchandise And Services

encompasses the goods that are sold and the activities performed for customers as part of business operations.

Target Market

A specific group of consumers identified as the intended recipients of a product, service, or marketing campaign.

In-store Presentation

The method of displaying products in a retail space to attract customers and encourage sales.