Avery Corporation Has Two Divisions,A and B,which Are Both Organized

question 24

Multiple Choice

Avery Corporation has two divisions,A and B,which are both organized as profit centers;Division A produces and sells widgets to Division B and to outside customers.Division A has total costs of $35,$20 of which are variable.Division A is operating significantly below capacity and sells the widgets for $50.Division B has received an offer from an outsider vendor to supply all the widgets it needs (20,000 widgets) at a cost of $45.The manager of Division B is considering the offer but wants to approach Division A first.What is the minimum transfer price from Division A to Division B?

• A)$20.
• B)$35.
• C)$45.
• D)$50.

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Definitions:

Sex Bias

The unfair difference in treatment or attitudes based on an individual's sex, often leading to disadvantage or prejudice against one sex.

Sex-Role Stereotyping

Sex-Role Stereotyping involves assigning behaviors, tasks, and roles based on societal expectations related to an individual's sex, often leading to limitations and inequities.

Issue of Control

The struggle or conflict surrounding the ability, desire, or need to manage or influence events, outcomes, or actions.

Issue of Power

A concept that refers to the dynamics of control, authority, and influence within relationships, groups, or societies, and how it affects interactions and decisions.