Division a Produces a Part with the Following Characteristics

question 11

Multiple Choice

Division A produces a part with the following characteristics: Division B, another division in the company, would like to buy this part from Division A. Division B is presently purchasing the part from an outside source at $28 per unit. If Division A sells to Division B, $1 in variable costs can be avoided.
-Suppose that Division A has ample idle capacity to handle all of Division B's needs without any increase in fixed costs and without cutting into its sales to outside customers.From the point of view of Division A,any sales to Division B should be priced no lower than:

• A)$29
• B)$30
• C)$18
• D)$17

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Definitions:

Evolutionary

Pertaining to evolution, the process through which species undergo changes over time due to genetic variation and natural selection.

Aggressiveness

The quality of being bold or assertive in behavior or attitude, often resulting in confrontational or forceful actions.

Social Dominance

A social hierarchy arrangement where certain groups or individuals are elevated in status above others.

Gender-Role Socialization

The process through which individuals learn the gender norms and behaviors considered appropriate in their society.