(Appendix 12A)The Red River Division of Alto Company Produces and Sells

question 12

Multiple Choice

(Appendix 12A) The Red River Division of Alto Company produces and sells bags of pottery clay which can either be sold to outside customers or transferred to the White Mountain Division of Alto Company.The following data are available for the last year: By selling to the White Mountain Division, the Red River Division will avoid $3 per bag in selling costs. If Red River can sell 15, 000 bags annually to outside customers, according to the formula in the text, what is the lowest acceptable transfer price from the viewpoint of the selling division?

• A)$20 per bag
• B)$16 per bag
• C)$11 per bag
• D)$14 per bag

Identify and assess the methods used by firms to decide on the optimal amount of research and development.

Describe the legal protections available for innovations and the advantages of being a leader in innovation.

Evaluate the arguments for and against the elimination of patents on certain types of products.

Define venture capital and understand its role in funding innovation and new businesses.

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Definitions:

Unions

Organizations formed by workers to protect their rights and interests, typically through collective bargaining with employers.

United States

A country located in North America, consisting of 50 states, a federal district, and several territories.

Collective Bargaining

The process of negotiation between employers and a group of employees aimed at agreements to regulate working salaries, working conditions, and other aspects of workers' compensation and rights.