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NEW QUESTION: 1
Division Z of a company produces a component that it currently sells to outside customers for US $20 per unit At its current level of production, which is 60% of capacity, Division Z's fixed cost of producing this component is US $5 per unit and its variable cost is US $12 per unit Division Y of the same company would like to purchase this component from Division Z for US $10. Division Z has enough excess capacity to fill Division Y's requirements. The managers of both divisions are compensated based upon reported profits. Which of the following transfer prices will maximize total company profits and be most equitable to the managers of Division Y and Division Z?
A. US $18 per unit
B. US $22 per unit
C. US $12 per unit
D. US $20 per unit
Answer: A
Explanation:
A unit price of US $18 is less than Division Y's cost of purchase from an outside supplier but Division Z's production cost. Accordingly, both Y and Z benefit.
NEW QUESTION: 2
A customer may not understand a proposed solution and send the case back to you.
How can you avoid this situation?
A. Send customers short answers to avoid confusion.
B. Update the customer with detailed step by step solutions using clear but short sentences.
C. Send the customer multiple possible solutions even if you have not tested them.
D. Update the customer with the same solution you sent originally until the customer understands that solution.
Answer: B
NEW QUESTION: 3
Given:
And given the commands:
What is the result?
TRUE null
A. A ClassCastExceptionis thrown at runtime.
B. false false
C. true true
D.
E. true false
Answer: D