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

question 173

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 no idle capacity, what is the minimum transfer price the Burnaby Division should agree to accept?

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

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Definitions:

Sexual Issues

Challenges or problems related to sexual functioning, preferences, or behavior.

Homosexual Couples

Partnerships between two people of the same sex, recognized in various forms by different societies.

Early Ejaculation

Another term for premature ejaculation, indicating orgasm and ejaculation that occur with minimal sexual stimulation shortly after penetration.

Squeeze Technique

A technique for the treatment of early or involuntary ejaculation in which the partner squeezes the erect penis below the glans immediately prior to ejaculation.