Division a Has Variable Manufacturing Costs of $25 Per Unit

question 77

Multiple Choice

Division A has variable manufacturing costs of $25 per unit and fixed costs of $5 per unit.Division A is operating at capacity,what is the opportunity cost of an internal transfer when the market price is $35?

• A) $5.
• B) $10.
• C) $25.
• D) $30.

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Definitions:

Tertiary Sector

The segment of the economy that provides services rather than producing goods, including industries such as retail, entertainment, financial services, and health care.

Economy

The system of production, distribution, and consumption of goods and services within a society or geographical area.

Policy Analyst

A professional who evaluates and advises on the formulation of policies and strategies, often within governmental or organizational contexts.

Federal Government

The national government of a federation that holds the authority over the political entities such as states or provinces.