The Vega Division of Ace Company Makes Wheels Which Can

question 17

Multiple Choice

The Vega Division of Ace Company makes wheels which can either be sold to outside customers or transferred to the Walsh Division of Ace Company. Last month the Walsh Division bought all 4,000 of its wheels from the Vega Division for $42 each. The following data are available from last month's operations for the Vega Company: If the Vega Division sells wheels to the Walsh Division, Vega can avoid $2 per wheel in sales commissions. An outside supplier has offered to supply wheels to the Walsh Division for $41 each.
-What is the maximum price per wheel that Walsh should be willing to pay Vega?

• A) $28
• B) $41
• C) $42
• D) $45

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Definitions:

Mindfulness Meditation

A practice of focused attention and awareness to achieve mental clarity and emotional calmness.

Biofeedback

A technique that trains people to improve their health by using signals from their own bodies to control bodily processes that normally occur involuntarily, such as heart rate.

Feel-good, Do-good Phenomenon

A psychological concept suggesting that individuals who feel happy or content are more likely to perform acts of kindness or altruism.

Emotion-focused

A therapeutic approach designed to help individuals manage and cope with their emotional responses rather than trying to change the underlying situation.