Raphael,Inc

question 122

Multiple Choice

Raphael,Inc.has a division that manufactures a component that sells for $170 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 $24.What is the minimum transfer price if the division is operating below its capacity?

• A) $170
• B) $50
• C) $74
• D) $24

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Definitions:

Social Forces

The societal influences that affect individuals' behaviors, attitudes, and actions within a community or society.

Conform

The act of matching attitudes, beliefs, and behaviors to what is considered normal or acceptable in society.

Pressures

Forces that influence or urge someone to act or behave in a certain way.

Direct Commands

Instructions given clearly and unequivocally, expecting immediate compliance.