Fruities Ltd Has Two Divisions,Durian Division and Juice Division

question 32

Multiple Choice

Fruities Ltd has two divisions,Durian Division and Juice Division.Durian Division has an annual capacity of 10 000 units of durian juice concentrate.Juice Division's annual requirement of durian juice concentrate is 8000 units.Fruities Ltd requires that divisions should purchase inputs internally where available and uses a cost-plus transfer price policy,where transfer price is set at variable cost plus 25 per cent.Therefore,Durian Division always satisfies the demand of the Juice Division first,before selling the remaining durian concentrate to external suppliers at the market price of $10 per unit.The variable cost of one unit of durian juice concentrate at Durian Division is $6.What is the difference in Durian Division's profit under the cost-plus transfer price policy and a market-price transfer price policy?

• A) Fruities Ltd's profit is $20 000 lower under the cost-plus transfer pricing approach
• B) Fruities Ltd's profit is $20 000 higher under the cost-plus transfer pricing approach
• C) Fruites Ltd's profit is $25 000 higher under the cost-plus transfer pricing approach
• D) There is no difference under the two policies.

Comprehend the importance of the corpus callosum in visual field integration.

Understand color perception theories and the genetic basis of color blindness.

Grasp the significance of neuronal specialization in the visual cortex and temporal lobe for complex visual processing.

Understand the physiological mechanisms underlying color vision and color blindness.

---

Definitions:

Chronological Age

The actual age of an individual as measured in years from the date of birth.

Treatment Goals

Specific, measurable objectives set by healthcare providers and patients to guide therapeutic interventions.

Diagnosis

The identification of the nature and cause of a certain phenomenon, often used in the context of medical conditions or technical problems.

Evaluate Progress

The process of assessing the advancement or development towards achieving a specific goal, objective, or standard.