Figure 1 Universe Industries Has Two Divisions: the Haley Division and the and the Comet

question 5

Multiple Choice

Figure 1
Universe Industries has two divisions: the Haley Division and the Comet Division. Information about a component that the Haley Division produces is as follows:
The Haley Division can produce up to 5,000 components per year. The Comet Division needs 200 units of the component for a product it manufactures.
-Refer to Figure 1 above. If the selling division did NOT have excess capacity, the minimum transfer price the selling division would be willing to accept is

• A) £120
• B) £75
• C) £50
• D) £30

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Definitions:

Nine-Digit

Typically referring to a sequence of nine numbers, often used for identification purposes, such as a Social Security number in the United States.

Deposit Slip

A form supplied by a bank for a depositor to fill out, designed to document in detail the money being deposited.

Smaller Deposits

Lesser quantities of material or money placed or stored in a bank account or geological feature.

Green Or Blue Ink

Colored inks used for writing, with the choice often based on personal preference or specific document requirements.