From the following information, determine the transfer price under the general pricing rule:

Opportunity cost of the transfer	$6.80
Variable cost of production	$10.40
Variable cost of transportation	$0.60
Variable cost of production including packaging	$12.00

	a.	$12.00.
	b.	$19.40.
	c.	$10.40.
	d.	$12.60.
	e.	$17.80.

Which of the following statements is(are) false? 1) Return on investment encourages managers to take a long-term view of corporate performance. 2) Return on investment may encourage managers to defer the replacement of worn assets. 3) Return on investment may encourage managers to increase expenditure on research and development.

	a.	1 and 2.
	b.	2 and 3.
	c.	1 and 3.
	d.	All the above.
	e.	None of the given answers.