Polly Woodside Maritime Division Purchases from an Outside Supplier for $52

question 12

Multiple Choice

Polly Woodside Maritime Division purchases from an outside supplier for $52 per unit. The company's Shore Division, which has excess capacity, makes and sells the same part for external customers at a variable cost of $38 and a selling price of $58. If Shore Division commences sales to Maritime Division it will (1) use the general rule and (2) be able to reduce the variable cost on internal transfers by $4. If external sales are not affected, Shore Division should establish a transfer price of:

• A) $34
• B) $38
• C) $58
• D) None of the given answers

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Definitions:

Outpatient Detoxification

A medical and therapeutic approach for safely managing the acute physical symptoms of withdrawal from drugs or alcohol within a non-residential setting.

Inpatient SUD Treatment

A type of rehabilitation program where individuals with Substance Use Disorders (SUD) stay in a treatment facility for a period of time to receive constant medical care and therapy.

28-day

A common duration for inpatient rehabilitation programs for substance use disorders, designed to provide intensive support in the early stages of recovery.

Theory and Science

Refers to the systematic exploration and study of concepts, principles, and methods that underpin knowledge and understanding in various disciplines, driving evidence-based practice and innovation.