Division 1 of Ace Company Makes and Sells Wheels That

question 18

Multiple Choice

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

Recognize how external economic forces like inflation and recession affect the overall economy and individual financial decisions.

Identify changes in consumer income levels and their impact on spending habits.

Understand the concept of discretionary income and its calculation.

Recognize the impact of economic behaviors and conditions on discretionary income.

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Definitions:

Equity Theory

A theory indicating that individuals assess their own value and treatment in relation to others to determine fairness.

Job Satisfaction

A pleasant feeling resulting from the perception that one's job fulfills or allows for the fulfillment of one's important job values.

Salary.com

A website that provides information about job salaries, benefits, and compensation.

National Average

The median or mean value derived from a set of data collected across a country, used as a benchmark for comparison.