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

question 29

Multiple Choice

Dukes Computing Systems
Dukes 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 motherboard from Production at $65 per unit.The Production Division is considering raising the price to $75 per unit.The Production Division's costs related to the motherboard production is as follows:

The Marketing Division handles the promotion and distribution of the motherboard purchases from the Production Division and sells each motherboard for $125.Marketing Division incurs monthly fixed costs of $5,000.Marketing Division sells 2,000 units per month.Marketing Division can buy the same motherboard from outside suppliers for $75.
Refer to Dukes Computing Systems.If the Marketing Division purchases the motherboard from outside suppliers,the facilities the Production Division uses to manufacture the motherboard would remain idle.The Production Division is operating below capacity because of weak global demand for the product.
What should be the motherboard transfer price be between the Production Division and Marketing Division in order for Dukes' to optimize profits?

• A)$ 55
• B)$ 65
• C)$ 75
• D)$125

Comprehend the rationale behind actions involving fairness in various contexts, including charitable giving and tipping.

Grasp the importance of historical data in estimating returns on equity investments.

Recognize common biases in consumer decision-making and the role of anchoring.

Understand the anatomy of the respiratory system, including the functions of its specific parts.

---

Definitions:

Normal Weight

Indicates a weight range considered healthy for a person based on height, as determined by medical standards and body mass index (BMI) measurements.

Medical Model

A framework for understanding diseases and disorders by identifying biological causes, offering diagnoses, and framing treatment within a medical context.

Mental Disorders

Mental disorders are patterns of behavioral or psychological symptoms that impact multiple areas of life and create distress for the person experiencing these symptoms.

Bulimia Nervosa

An eating disorder characterized by episodes of binge eating followed by behaviors aimed at preventing weight gain, such as self-induced vomiting.