Raven,Inchas a Division That Manufactures a Component That Sells for $195

question 99

Multiple Choice

Raven,Inc.has a division that manufactures a component that sells for $195 and has a variable cost of $30.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 below its capacity?

• A) $195
• B) $30
• C) $50
• D) $20

---

Definitions:

Federal Rules Of Evidence

A set of rules that govern the introduction and use of evidence in federal criminal and civil proceedings.

Authenticated

Verified or proven to be true, genuine, or real.

Follow-Up Questions

Questions that are asked to obtain more detailed information following an initial inquiry or response.

Leading Questions

Are questions structured in a manner that suggests the desired answer, often used in legal settings to guide witnesses.