Division Alpha Can Purchase a Required Part from an Outside

question 72

Multiple Choice

Division Alpha can purchase a required part from an outside supplier for $35.
-Division Beta is willing to supply the part at a transfer price of $36.50,which is its incremental costs.Division Alpha's manager should

• A)pay the $38.50 price to Division Beta.
• B)tell his immediate supervisor that Division Beta is being unreasonable.
• C)negotiate an appropriate transfer price with the manager of Division Beta.
• D)buy from the outside supplier.

---

Definitions:

Fiscal Policy Institute

An independent, non-partisan research organization that studies and analyzes fiscal policies for public benefit.

Federal Minimum Wage

The lowest hourly wage that employers can legally pay their workers, as set by federal law.

Stimulate Job Growth

Measures and policies implemented to increase the number and quality of jobs in an economy.

Small Businesses

Enterprises characterized by fewer employees, lower revenue, and smaller scale of operations compared to larger corporations.