Koppenhaver Products, Inc., has a Relay Division that manufactures and sells a number of products, including a standard relay that could be used by another division in the company, the Electronics Division, in one of its products. Data concerning that relay appear below: Capacity in units 86,000Selling price to outside customers$63Variable cost per unit$41Fixed cost per unit (based on capacity)$10?The Electronics Division is currently purchasing 15,000 of these relays per year from an overseas supplier at a cost of $57 per relay.?Assume that the Valve Division is selling all of the valves it can produce to outside customers. Also assume that $10 in variable expenses can be avoided on transfers within the company due to reduced shipping and selling costs. What should be the
minimum acceptable transfer price for the valves from the standpoint of the Valve Division?
A. $41 per unit
B. $63 per unit
C. $57 per unit
D. $53 per unit
Answer: D
You might also like to view...
A(n) ________ in the consumer purchase decision process occurs when consumers scan their memories for previous experiences with products or brands.
A. problem recognition B. antecedent state C. external search D. internal search E. purchase task
Answer the following statements true (T) or false (F)
1. The administrative theory of management is part of the classical theory. 2. Edward and Tricia solved their conflict by compromising. Each had to give up something they wanted in order to reach a resolution. This is an example of integrative conflict resolution. 3. The classical theory of management focuses on all organizations whereas the behavioral theory focuses on specific types of organizations. 4. Theory X managers assume that people like to work and do not need close supervision.
Stakeholders generally include a firm's current customers, but not its prospective customers
Indicate whether the statement is true or false
Employees can be encouraged to contribute to quality by ______.
a. giving production workers more authority and responsibility b. discouraging them from forming quality circles c. firing them if they do not perform better d. requiring each unit of each product to be inspected