Sahara Corporation Has No Excess Capacity

question 4

Multiple Choice

Sahara Corporation has no excess capacity. If the firm desires to implement the general transfer-pricing rule, opportunity cost would be equal to:

• A) zero.
• B) the direct expenses incurred in producing the goods.
• C) the total difference in the cost of production between two divisions.
• D) the contribution margin forgone from the lost external sale.
• E) the summation of variable cost plus fixed cost.

---

Definitions:

Heritage Sites

Places of significance due to their cultural, historical, or natural importance, recognized and preserved for posterity and education.

Wheelchair Ramp

A slope installed in addition to or instead of stairs to allow wheelchair users and individuals with disabilities to access buildings.

Designated Groups

Specific segments of the population that are protected under affirmative action and equal opportunity policies, often including women, minorities, and individuals with disabilities.