Answer the Following Questions Using the Information Below:
Branded Shoe

question 69

Multiple Choice

Answer the following questions using the information below:
Branded Shoe Company manufactures only one type of shoe and has two divisions, the Stitching Division and the Polishing Division. The Stitching Division manufactures shoes for the Polishing Division, which completes the shoe and sells it to retailers. The Stitching Division "sells"shoes to the Polishing Division. The market price for the Polishing Division to purchase a pair of shoes is $42. (Ignore changes in inventory.) The fixed costs for the Stitching Division are assumed to be the same over the range of 40,000-100,000 units. The fixed costs for the Polishing Division are assumed to be $14 per pair at 100,000 units.
Stitching's costs per pair of soles are:
$\begin{array} { l l } \text { Direct materials } & \$ 10 \\ \text { Direct labor } & \$ 8 \\ \text { Variable overhead } & \$ 6 \\ \text { Division fixed costs } & \$ 4 \end{array}$
Polishing's costs per completed pair of shoes are:
$\begin{array} { l l } \text { Direct materials } & \$ 14 \\ \text { Direct labor } & \$ 6 \\ \text { Variable overhead } & \$ 4 \\ \text { Division fixed costs } & \$ 16 \end{array}$
-What is the market-based transfer price per pair of shoes from the Stitching Division to the Polishing Division?

• A) $20
• B) $32
• C) $42
• D) $52

Understand how the law enforces the keeping of promises through contract law.

Identify what constitutes consideration within a contract.

Recognize the role of paralegals in disputes involving contract and sales law.

Explain special doctrines related to contracts, like promissory estoppel.

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Definitions:

Interdependence

The mutual reliance between two or more groups, persons, or systems, often found within organizational or ecological contexts.

Consciousness

The state of being aware of and able to think about one's own existence, sensations, thoughts, surroundings, and experiences.

Neoliberalism

A political-economic philosophy advocating for free markets, deregulation, and reduction in government spending in social services.

Inequality

The state of not being equal, especially in status, rights, and opportunities, manifesting in various societal, economic, and political contexts.