Colonial Computing Systems Colonial Computing Systems Manufactures and Sells Various Computer Products and Computer

question 104

Multiple Choice

Colonial Computing Systems
Colonial Computing Systems manufactures and sells various computer products and has two decentralized divisions: (1) Production and (2) Marketing.The Marketing Division has always purchased a particular mouse from Production at $50 per unit.The Production Division is considering raising the price to $60 per unit.The Production Division's costs related to the mouse production is as follows:

The Marketing Division handles the promotion and distribution of the mouse purchases from the Production Division and sells each mouse for $100.Marketing Division incurs monthly fixed costs of $5,000.Marketing Division sells 1,500 units per month.Marketing Division can buy the same mouse from outside suppliers for $60.If the Marketing Division purchases the mouse from outside suppliers,the facilities the Production Division uses to manufacture the mouse would remain idle.
Refer to Colonial Computing Systems.The Production Division is operating below capacity because of weak global demand for the product.What should be the mouse transfer price between the Production Division and Marketing Division in order for Colonial to optimize profits?

• A)$ 50
• B)$ 55
• C)$ 60
• D)$100

Understand the implications of exceeding the revenue threshold of $500,000 for NFPOs on capital asset reporting.

Recognize and appropriately account for restricted and unrestricted contributions and their reporting in financial statements.

Understand the classification and recording of different types of contributions in not-for-profit organizations.

Comprehend the accounting methods (deferred contribution and restricted fund method) for contributions and investment income in not-for-profit organizations.

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Definitions:

Health Outcomes

The results of medical care and treatment, impacting the quality of life and survival rates of patients.

African American Women

Women who are of African descent living in the United States, a demographic group that may experience unique health, social, and cultural issues.

Intersectionality

A structure that helps comprehend the ways in which elements of an individual's social and political identities intersect to generate various forms of discrimination and advantages.

Race-Based Oppressions

Discriminatory practices and systemic inequalities faced by individuals based on their race or ethnicity.