Given the Following Data for Electrical Cord Division Assume That Electrical Cord Division Is Selling All It Can

question 98

Multiple Choice

Given the following data for Electrical Cord Division:
$$\begin{array} { | l | r | } \hline \text { Selling price to outside customers } & \$ 40 \\\hline \text { Variable cost per unit } & 30 \\\hline \text { Fixed cost- Total } & 10,000 \\\hline \text { Capacity (in units) } & 2,000 \\\hline\end{array}$$ Assume that Electrical Cord Division is selling all it can produce to outside customers.If it sells to the Appliance Division,$1 can be avoided in variable cost per unit.The Appliance Division is presently purchasing from an outside supplier at $38 per unit.From the point of view of the company as a whole,any sales to the Appliance Division should be priced at:

• A) $40.
• B) $39.
• C) $38.
• D) The company would not want the transfer to take place.

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Definitions:

Dominant Social Paradigm

The prevailing set of values, beliefs, and practices in a society that influence and regulate people's behavior and interactions.

Rapid Industrialization

The accelerated development and growth of industry in a region or country, typically marked by significant technological, economic, and social changes.

Pollution

The contamination of the natural environment by harmful substances or energies, causing adverse effects on living organisms and ecosystems.

Biopiracy

The practice of commercially exploiting naturally occurring biochemical or genetic material, especially by patenting them, without offering fair compensation to the indigenous people or nations where those materials were discovered.