Pager company has a division that manufactures a component that sells for 58$ and has a variable cost of 24$ and fixed cost of 16$. Another division wants to purchase the component. What is the minimum transfer price if the division is operating at capacity?
A. $22
B. $66
C. $24
D. $58
Answer: D. $58
You might also like to view...
By pursuing a joint venture entry strategy, a company can limit its financial risk as well as its exposure to political uncertainty
Indicate whether the statement is true or false
An increasing amount of _____ in the financial services and many other industries are made in real time using DSSs.
A. data automation B. materials management C. long-range forecasts D. decision making
What is the name of the database that is used to collect, validate, store, and disseminate data in support of government agency acquisitions?
A) General Services Administration database B) Central Contractor Registration database C) Customer Value Assessment database D) Vendor-Managed Inventory database E) Proposal Solicitation database
Which of the following best explains why companies are adopting the team selling approach to service large, complex accounts?
A) Products have become too complicated for one salesperson to handle a large company's needs. B) Customers prefer dealing with many salespeople rather than one sales representative. C) Job rotation, an integral part of team selling, keeps workers motivated and boosts their morale. D) Team selling facilitates the evaluation of individual contributions. E) With team selling, companies are not required to train the outside sales force any longer.