Multiple Choice
Use the following information for questions
The Selling Division's unit sales price is $25 and its unit variable cost is $15. Its capacity is 10,000 units. Fixed costs per unit are $6. Current outside sales are 8,000 units.
-What is the Selling Division's opportunity cost per unit from selling 3,000 units to the Purchasing Division?
A) $10
B) $25
C) $4
D) $0
Correct Answer:

Verified
Correct Answer:
Verified
Q24: In most cases, a company sets the
Q25: In time-and-material pricing, the material charge is
Q26: Dudly Drafting Services uses a 45% material
Q27: Negotiated transfer pricing is not always used
Q28: Differences in tax rates between countries can
Q30: Under the negotiated transfer pricing approach, the
Q31: There are two approaches for determining a
Q32: The negotiated transfer price approach should be
Q33: A company using cost-plus pricing has an
Q34: Bryson Company has just developed a