Aerated Water Company Makes Internal Transfers at 180% of Full

question 2

Multiple Choice

Aerated Water Company makes internal transfers at 180% of full cost.The Soda Refining Division purchases 30,000 containers of carbonated water per day,on average,from a local supplier,who delivers the water for $30 per container via an external shipper.To reduce costs,the company located an independent supplier in Missouri who is willing to sell 30,000 containers at $22 each,delivered to Aerated Water Company's Shipping Division in Missouri.The company's Shipping Division in Missouri has excess capacity and can ship the 30,000 containers at a variable cost of $1.50 per container.What is the total cost to Aerated Water Company if the carbonated water is purchased from the local supplier?

• A) $900,000
• B) $1,200,000
• C) $1,501,000
• D) $1,620,000

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Definitions:

Sociology

the study of human society, including patterns of social relationships, social interaction, and culture.

Patriarchy

A social system in which men hold primary power and predominate in roles of political leadership, moral authority, social privilege, and control of property.

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Periods of transformative change and paradigm shifts in the scientific community, characterized by the adoption of new theories and methodologies that significantly alter understanding and knowledge.

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