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:

Nail Matrix

The tissue under the nail that is responsible for producing cells that become the nail plate.

Lunula

The visible part of the root of a nail, often appearing as a whitish half-moon shape at the base of the fingernail or toenail.

Nail Groove

The depression or groove in the skin in which the sides of the nail are embedded, playing a critical role in nail growth and health.

Apocrine Sweat Glands

Apocrine sweat glands are a type of gland found in various parts of the body associated with hair follicles; they secrete a milky sweat that produces body odor when decomposed by bacteria on the skin.