3. Individual Problems 22-3

Your local fast-food chain with two dozen stores uses the company's internal corporate marketing department to produce signage, print ads, in-store displays, and so forth. When placing an order, store managers are assessed a chargeback (transfer price) of $80 per order that reduces store profitability but increases marketing department profitability. Lately, the store managers have been ordering more and more marketing services; the marketing department is swamped, and it cannot afford to hire more staff.

Which of the following dollar figures is a possible value for the marginal cost per order of the marketing department? In other words, which marginal cost per order for the marketing department would be consistent with this situation?Check all that apply.

• $52.00
• $88.00
• $60.00
• $108.00