Division a of Sibley, Inc

question 52

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 has capacity available to meet B's requirements, what is the minimum price it should charge?

• A)$40
• B)$75
• C)$20
• D)$60

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Definitions:

Orbicularis Oris

A complex of muscles in the face that encircles the mouth, controlling movements like closing or puckering the lips.

Buccinator

A muscle of the cheek that acts to compress the cheek against the teeth and is used in blowing and sucking motions.

Medial Excursion

Medial excursion is the movement of a body part toward the median plane of the body, often used to describe movements of the jaw or limbs.

Lateral Excursion

Refers to the side-to-side movement of the mandible, common in chewing actions.