Division B Has Variable Manufacturing Costs of $50 Per Unit

question 29

Multiple Choice

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

• A) $0.
• B) $25.
• C) $50.
• D) $60.

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Definitions:

Parallel Learning Structures

Are systems set up within organizations that run alongside formal operational processes to facilitate innovation and learning.

On the Job

Refers to being present and engaged in work activities at the workplace or during work hours.

Classroom

A room or space where teaching and learning activities are facilitated, typically found in educational institutions.

Ethical Problem

A situation or decision that presents a conflict between moral imperatives.