Axelia Corporation Has Two Divisions,Refining and Extraction

question 84

Multiple Choice

Axelia Corporation has two divisions,Refining and Extraction.The company's primary product is Luboil Oil.Each division's costs are provided below:

The Refining Division has been operating at a capacity of 40,300 barrels a day and usually purchases 25,400 barrels of oil from the Extraction Division and 15,100 barrels from other suppliers at $64 per barrel.
What is the transfer price per barrel from the Extraction Division to the Refining Division,assuming the method used to place a value on each barrel of oil is 120% of full costs?

• A)$18.00
• B)$21.60
• C)$56.00
• D)$100.80

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Definitions:

Microgenetic Design

A research method that involves the detailed and frequent observation and analysis of changes in a behavior or ability as it is being learned, capturing the process of learning or development.

Developmental Change

Transformations or transitions in the physical, cognitive, social, and emotional domains of an individual across their lifespan.

+.50 Correlation

A statistical measure that indicates a moderate positive relationship between two variables, meaning as one variable increases, the other variable tends to also increase to some extent.

Longitudinal

Longitudinal refers to a type of research study or observation that takes place over an extended period, allowing for the assessment of changes and developments over time.