Heart Company Has Two Divisions

question 86

Multiple Choice

Heart Company has two divisions.Division A is interested in purchasing 10,000 units from Division B.Capacity is available for Division B to produce these units.The per-unit market price is $30 per unit,with a variable cost of $25.The manager of Division A has offered to purchase the units at $22 per unit.In an effort to make this transfer price beneficial for the company as a whole,what is the range of prices that should be used during negotiations between the two divisions?

• A) $22 to $30
• B) $22 to $25
• C) over $30
• D) $25 to $30

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Definitions:

Biological Evolution

The process by which species of organisms undergo change over time through genetic variation and natural selection, leading to the emergence of new species.

Punctuated Equilibria

A model of macroevolutionary change that suggests evolution occurs via long periods of stability or stasis punctuated by periods of rapid change.

Darwinian Gradualism

The theory proposed by Charles Darwin that evolution occurs through the gradual accumulation of small genetic changes over time.

Fossil Record

The total number of fossils discovered and the information they provide about past life forms and the environments they lived in.