(Appendix 12A)Division T of Clocker Company Makes a Timer Which

question 3

Multiple Choice

(Appendix 12A) Division T of Clocker Company makes a timer which it sells for $30 to outside customers.The division has supplied the following data concerning the timer: Division S of Clocker Company is currently buying 5, 000 similar timers each month from an overseas supplier at $27 each.Division S would like to acquire its timers from Division T if the price is right. Suppose Division T is operating at capacity and can sell all of the timers it produces to outside customers at its usual selling price.According to the formula in the text, what is the lowest acceptable transfer price from the viewpoint of the selling division?

• A)$30 per timer
• B)$27 per timer
• C)$25 per timer
• D)$15 per timer

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Definitions:

Behavior Therapist

A healthcare professional specializing in treating mental health disorders by helping patients modify problematic behaviors.

EMDR

Eye Movement Desensitization and Reprocessing, a psychotherapy approach designed to alleviate the distress associated with traumatic memories.

Eye Movements

The voluntary or involuntary shifting of the gaze to acquire visual information, crucial for activities such as reading, scanning the environment, and tracking moving objects.

Vividly Imagines

Refers to the ability to create intense, clear, and detailed images in one’s mind.