Division a Has Variable Manufacturing Costs of $50 Per Unit

question 42

Multiple Choice

Division A has variable manufacturing costs of $50 per unit and fixed costs of $10 per unit. Assuming that Division A is operating at capacity, what is the opportunity cost of an internal transfer when the market price is $75?

• A) $20.
• B) $25.
• C) $50.
• D) $60.

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Definitions:

Hassles

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Approach-Avoidance Conflict

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Dream Vacation

A highly idealized travel experience, often imagined or planned, that represents a person's ultimate holiday destination and activities.