Atom,Inchas a Division That Manufactures a Component That Sells for $160

question 189

Multiple Choice

Atom,Inc.has a division that manufactures a component that sells for $160 and has a variable cost of $50.Another division of the company wants to purchase the component.Fixed cost per unit of the component is $20.What is the minimum transfer price if the division is operating at capacity?

• A) $160
• B) $50
• C) $70
• D) $20

Analyze the conditions under which a person can transfer or sell property they do not own but have rights to use.

Recognize the conditions and responsibilities involved in bailments, including care levels required and liability for damage.

Distinguish between personal and real property.

Identify the legal considerations and consequences of mixed or confused property ownership.

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Definitions:

Viscosity Oil

A measure of a lubricant's resistance to flow at certain temperatures, indicating its thickness and suitability for specific engine types.

Mechanical Fan

A device driven directly by the engine's power, used to blow air through the radiator to cool the engine coolant.

Belt-Driven Fan

A fan driven by a belt connected to the engine, primarily used to cool the engine by forcing air over the radiator.

Electric Fan

A fan powered by electricity, used in various applications including cooling systems in vehicles, computers, and as a household appliance for air circulation.