Division a of Sibley, Inc

question 47

Multiple Choice

Division A of Sibley, Inc. has operating data as follows: Capacity 20,000 units
Selling price $80 per unit
Variable costs $45 per unit
Fixed costs $20 per unit
Division B wants to purchase units from Division A. If Division A agrees to sell units to Division B, A's variable costs will be $5 less per unit.
If Division A is operating at capacity, what is the minimum price it should charge?

• A)$40
• B)$75
• C)$20
• D)$60

Recognize the role of conditioning (classical and operant) in shaping attitudes.

Comprehend how repeated exposure affects perception and belief.

Understand the use of fear in persuasion and its potential outcomes.

Grasp the processes involved in attitude change and resistance.

---

Definitions:

Labor Rate Variance

The difference between the actual cost of labor and the expected (or budgeted) cost of labor based on standard rates and hours.

Labor Standards

Benchmarks or norms for the amount of labor time required to perform a certain task or produce a certain amount of goods.

Particular Product

A specific item or good that is produced and offered for sale by a business.

Labor Efficiency Variance

A measure used in budgeting and cost management to analyze the difference between the actual hours worked and the hours that should have been worked, according to standards, for the actual level of production.