Answer the Following Question(s)using the Information Below

question 95

Multiple Choice

Answer the following question(s) using the information below:
Greenlawn Ltd.has two divisions, Distribution and Production.The company's primary product is fertilizer.Each division's costs are provided below:
The Distribution Division has been operating at a capacity of 4,000,000 kilograms a week and usually purchases 2,000,000 kilograms from the Production Division and 2,000,000 kilograms from other suppliers at $0.45 per kilogram.
-What is the transfer price per kilogram from the Production Division to the Distribution Division, assuming the method used to place a value on each kilogram of fertilizer is 160% of variable costs?

• A)$0.05
• B)$0.11
• C)$0.08
• D)$0.40
• E)$0.48

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Definitions:

Drawsheets

Small bed linens placed crosswise over the middle of the bottom sheet to assist in repositioning or lifting a patient in bed.

Position

The way in which someone or something is placed or arranged in relation to its surroundings.

Direction of Movement

Refers to the course along which someone or something moves, which can be described in terms of direction (such as north, south, forward, backward).

Stroke

Is a medical condition characterized by a sudden disruption of blood flow to parts of the brain, causing tissue damage and possible loss of function.