Branded Shoe Company Manufactures Only One Type of Shoe and Has

question 139

Multiple Choice

Branded Shoe Company manufactures only one type of shoe and has two divisions,the Stitching Division and the Polishing Division.The Stitching Division manufactures shoes for the Polishing Division,which completes the shoes and sells them to retailers.The Stitching Division "sells" shoes to the Polishing Division.The market price for the Polishing Division to purchase a pair of shoes is $46.(Ignore changes in inventory. ) The fixed costs for the Stitching Division are assumed to be the same over the range of 40,000-101,000 units.The fixed costs for the Polishing Division are assumed to be $14 per pair at 101,000 units.


What is the transfer price per pair of shoes from the Stitching Division to the Polishing Division if the transfer price per pair of shoes is 125% of full costs?

• A)$15.00
• B)$27.50
• C)$37.50
• D)$45.00

---

Definitions:

Somatic Symptom Disorder

A mental disorder characterized by an excessive focus on physical symptoms, such as pain or fatigue, that causes significant distress or impairment.

Frequent Syncope

The experience of repeated episodes of fainting or sudden, temporary loss of consciousness, usually caused by a decrease in blood flow to the brain.

Pain Scale

An assessment tool used to quantify the intensity of pain a person is experiencing, often based on a numerical scale or descriptive qualifiers.

Insomnia Result

The outcome or consequence of insomnia, which may include fatigue, difficulty concentrating, and mood disturbances.