(Appendix 12A)The North Division of Barter Company Makes and Sells

question 16

Multiple Choice

(Appendix 12A) The North Division of Barter Company makes and sells a single product, which is a part used in manufacturing trucks.The annual production capacity is 35, 000 units and the variable cost of each unit is $24.Presently the North Division sells 32, 000 units per year to outside customers at $40 per unit.The South Division of Barter Company would like to buy 15, 000 units a year from North to use in its production.There would be no savings in variable costs from transferring the units internally rather than selling them externally.The lowest acceptable transfer price from the standpoint of the North Division should be closest to:

• A)$36.80
• B)$24.00
• C)$32.00
• D)$40.00

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Definitions:

Attachment

A deep emotional bond that connects one person to another across time and space.

Body Contact

Physical interaction or touch between individuals, which can influence emotional and physical health.

Artificial Mothers

Constructs used in psychological experiments to study attachment behaviors, often seen in studies involving infant animals such as monkeys.

Critical Period

A specific time during development when the presence or absence of certain experiences can have profound and lasting effects on an individual.