Division a Has Variable Manufacturing Costs of $50 Per Unit

question 70

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 optimal transfer price of an internal transfer when the market price is $75?

• A)$20.
• B)$25.
• C)$50.
• D)$60.
• E)$75.

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Definitions:

CLX

Often relates to ControlLogix, a range of programmable logic controllers (PLCs) and systems designed by Rockwell Automation for industrial automation.

Coil Instructions

Commands used in ladder logic programming for PLCs to energize or de-energize output devices, such as relays or solenoids, controlling their state.

Input Instructions

Commands or protocols that guide the processing of inputted data into a system or device.