Which of the following is NOT an element of the disaster risk decision tree model?
A) the buyer's financial loss incurred in a supply cycle if supplier i were disrupted
B) the marginal cost of managing a supplier
C) the buyer's financial loss incurred in a supply cycle if all suppliers were disrupted
D) the probability of a "super-event" that would disrupt all suppliers simultaneously
E) the probability of a "unique-event" that would disrupt only one supplier
A
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Raven, Inc. has a division that manufactures a component that sells for $195 and has a variable cost of $30. Another division of the company wants to purchase the component. Fixed cost per unit of the component is $20. What is the minimum transfer price if the division is operating below its capacity?
A) $195 B) $30 C) $50 D) $20
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