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:

Preschoolers

Children who are in the age group typically between three to five years old, often attending preschool to begin early education before starting formal schooling.

Artificial Sweetener

Substances used to sweeten foods and beverages without the caloric content of sugar, often synthetically produced.

Teratogen

Any agent or substance that can cause malformation or gross structural abnormalities in a developing embryo or fetus.

Fetus

A developing mammal or human inside the womb from the end of the embryonic stage until birth.