Holmes,Inc

question 64

Multiple Choice

Holmes,Inc.has a division that manufactures a component that sells for $165 and has a variable cost of $45.Another division of the company wants to purchase the component.Fixed cost per unit of the component is $24.What is the transfer price if the division is operating at full capacity?

• A) $69
• B) $189
• C) $165
• D) $24

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Definitions:

Friction-reducing Device

A tool or instrument designed to minimize the resistance caused by two surfaces moving against each other, often used in industrial and medical settings.

Wheelchair Safety

Guidelines and practices designed to protect individuals who use wheelchairs from injuries or accidents.

Cerebral Vascular Accident

Another term for a stroke, a medical condition caused by the interruption of blood supply to the brain.

Supportive Devices

Tools or apparatus designed to assist individuals with disabilities or impairments in performing daily activities or improving mobility.