Wetherald Products, Inc., has a Pump Division that manufactures and sells a number of products, including a standard pump that could be used by another division in the company, the Pool Products Division, in one of its products. Data concerning that pump appear below: Capacity in units 55,000Selling price to outside customers$82Variable cost per unit$53Fixed cost per unit (based on capacity)$11?The Pool Products Division is currently purchasing 4,000 of these pumps per year from an overseas supplier at a cost of $74 per pump.?Assume that the Pump Division is selling all of the pumps it can produce to outside customers. What should be the minimum acceptable transfer price for the pumps from the standpoint of the Pump Division?
A. $53 per unit
B. $74 per unit
C. $82 per unit
D. $64 per unit
Answer: C
You might also like to view...
Explain the PLAN acronym and its relevance to positive communication.
What will be an ideal response?
Which practice, used by a change agent to institutionalize change, relates to regular updates about the status of the change and motivation to continue it?
a. Active participation b. Persuasive communication c. Management of internal/external information d. HRM practices
XBRL is an XML-based language consisting of a set of tags that are used to unify the presentation of business reporting information into a single format that can be easily read by almost any software package and can be easily searched by Web browsers.
Answer the following statement true (T) or false (F)
The foreman constantly nags the bricklayers to work faster. When the wall is finished, he stops nagging. This is an example of ________ reinforcement.
A. selective B. singular C. negative D. positive