The Kelso Division Produces and Sells a Product to External

question 20

Multiple Choice

The Kelso Division produces and sells a product to external and internal customers. Per-unit information about its operations include: Selling price per unit to external customers $250
Variable manufacturing costs per unit 115
Fixed manufacturing overhead costs per unit 70
If Kelso is operating at capacity and has unlimited external customer demand, what should be the transfer price for Kelso's product?

• A)$245
• B)$250
• C)$115
• D)$185

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Definitions:

Coenocytic

Refers to a type of cell or organism that has multiple nuclei sharing a common cytoplasm, without being divided into individual cells.

Multiple Nuclei

A condition where a cell contains more than one nucleus, common in certain types of muscle cells and some fungal species.

Micronucleus

One or more smaller nuclei found, along with the macronucleus, in ciliates. The micronucleus is involved in sexual reproduction. Compare with macronucleus.

Macronucleus

A large nucleus found, along with one or several micronuclei, in ciliates. The macronucleus regulates metabolism and growth. Compare with micronucleus.