Division a Has Variable Manufacturing Costs of $50 Per Unit

question 42

Multiple Choice

Division A has variable manufacturing costs of $50 per unit and fixed costs of $10 per unit. Assuming that Division A is operating at capacity, what is the opportunity cost of an internal transfer when the market price is $75?

• A) $20.
• B) $25.
• C) $50.
• D) $60.

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Definitions:

Aggression

Behavior intended to harm or injure another being, whether physically, verbally, or psychologically.

Nature-Nurture Question

The ongoing debate in psychology and biology about the relative contributions of genetic inheritance (nature) and environmental factors (nurture) to human development.

Biological

Pertaining to the science of life or living organisms, focusing on their structure, function, growth, origin, evolution, and distribution.

Social

Relating to society or its organization, focusing on the interactions and relationships among individuals within a community.