Chipper Division of Acme Corp

question 7

Multiple Choice

Chipper Division of Acme Corp.sells 80,000 units of part Z-25 to the outside market.Part Z-25 sells for $40,has a variable cost of $22,and a fixed cost per unit of $10.Chipper has a capacity to produce 100,000 units per period.Jones Division currently purchases 10,000 units of part Z-25 from Chipper for $40.Jones has been approached by an outside supplier willing to supply the parts for $36.If Acme uses a negotiated transfer pricing system,what is the maximum transfer price that should be charged for this transaction?

• A)$40.
• B)$36.
• C)$32.
• D)$22.

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Definitions:

Jay Conger

An academic and author recognized for his research on leadership, influence, and organizational behavior.

Achievement-oriented Leadership

A leadership style focused on setting challenging goals, emphasizing excellence, and working to achieve high standards of performance.

Directive Leadership

A leadership style where the leader tells team members what to do and how to do it, controlling most decision-making processes.

Supportive Leadership

Supportive leadership is a leadership style where the leader shows concern for employees' well-being, encourages open communication, and supports team members in their roles.