Given the Following Data for Division A: Assume That

question 3

Multiple Choice

Given the following data for Division A: Assume that Division A is selling all it can produce to outside customers.If it sells to Division B,$1 can be avoided in variable cost per unit.Division B is presently purchasing from an outside supplier at $38 per unit.From the point of view of the company as a whole,any sales to Division B should be priced at:

• A)$40.
• B)$39.
• C)$38.
• D)$37.
• E)The company would not want the transfer to take place.

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Definitions:

Fed Targeting

Fed targeting involves the Federal Reserve using monetary policy tools to aim for specific economic targets, such as inflation rates or employment levels.

Money Supply

The whole assembly of monetary resources in an economy at a certain time period.

Interest Rate

is the cost of borrowing money, typically expressed as a percentage of the principal, charged by lenders to borrowers.

Federal Reserve

The central banking system of the United States, responsible for monetary policy, regulation of financial institutions, and maintaining stability in the financial system.