(Appendix 12A)Division 1 of Ace Company Makes and Sells Wheels

question 20

Multiple Choice

(Appendix 12A) Division 1 of Ace Company makes and sells wheels that can either be sold to outside customers or transferred to Division 2.The following data are available from last month: Division 1: Division 2: If Division 1 sells the wheels to Division 2, Division 1 can avoid $2 per unit in sales commissions.
What is the maximum price per wheel that Division 2 should be willing to pay Division 1 if a transfer were to take place?

• A)$33 per unit
• B)$35 per unit
• C)$47 per unit
• D)$50 per unit

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Definitions:

Sunday Stroll

A leisurely, casual walk taken on Sundays, often for relaxation and enjoyment.

Exploration

The act of searching, investigating, or traveling through an unfamiliar area in order to learn about it, often involving the discovery of new information.

Manipulation

The act of controlling or influencing others in a clever or unscrupulous way, often without their awareness or consent.

Curiosity

A strong desire to know or learn something.