You Have Been Provided with the Following Information for Division

question 26

Multiple Choice

You have been provided with the following information for Division X of a decentralized company: Division W would like to purchase all of its units internally.Division W needs 6,000 units each period and currently pays $42 per unit to an outside firm.What is the lowest price that Division X could accept from Division W? Assume that Division W wants to use a sole supplier and will not purchase less than 6,000 from a supplier.

• A)$45.
• B)$42.
• C)$40.
• D)$38.

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Definitions:

Extended Family

An extended family network that encompasses not just the immediate family members like parents and children but also includes grandparents, aunts, uncles, and various other related individuals.

Matrilineal

Children trace their family descent through their mother’s line, and property is passed on to female heirs.

Surrogate Fathers

Men who take on the role of a father figure in the life of a child who is not biologically theirs.

Economic Necessity

The requirement of economic resources or actions to satisfy basic needs or preserve financial stability.