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

question 27

Multiple Choice

Use the information below to answer the following question(s) .The Burnaby Division of Columbia Ltd.produces and sells component parts.Its variable costs per unit are $80 for direct materials, $32 for direct labour and $18 for variable factory overhead.It currently can sell it components on the outside market at a price of $165/unit.Fixed overhead costs are $22 per unit based on a denominator volume of 180,000 units.
-The Surrey Division of Columbia Ltd.has approached the Burnaby Division and requested that it supply 25,000 units of the component at a transfer price of $150.Assuming Burnaby Division has idle capacity, what is the transfer price the Burnaby Division should agree to accept?

• A)$165
• B)$150
• C)$152
• D)$130
• E)$118

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Definitions:

Technician Training

A program designed to equip individuals with the skills and knowledge necessary for technical professions.

Scientist Training

Education and preparation programs aimed at developing individuals' skills and knowledge in the scientific field to enable them to perform scientific research and tasks competently.

Research Psychologist

A professional who conducts scientific studies to understand, explain, and predict aspects of human behavior and mental processes.

Reliability

In the context of psychological testing and measurement, reliability refers to the consistency of a test's results over time.