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International Company, has a division that produces components for its main product - widgets. This division operates as a profit center and sells its components to other widget manufacturers. The present price of PSO per component is the basis for negotiation with the manufacturing division, which has been purchasing 500,000 units per year from other sources. The external price is P48 per component due to the large number purchased. The component division has adequate capacity to provide the needs of the manufacturing division. However, the manufacturing division does not want to pay the full price for P50. The components' unit cost is presented below: Direct materials P18.00 Direct labor 14.00 Variable Overhead 6.00 Fixed overhead (per unit based on a capacity of 4,000,000 units) 4.00 Total Cost P42.00 46. The list price is A. P42 B. P38 C.P43 D.248 E. P50 47. The market price is A. P42 B.P38 C. P43 D. P48 E. P50 48. The Full Cost price is A. P42 B. P38 C. P43 D. P48 E.P50 49. The minimum price is A. P42 B. P38 C. P43 D. P48 E. P50 50. The full cost plus price is A. P42 B. P38 C. P43 D. P48 E. P50 51. Which range is appropriate for the Intercompany transfer? A. P38-P42 B. P38-P43 C. P38-248 D. P38-P50 E. P38-P52 52. Under what circumstances should the manufacturing division purchase components from other sources? A. If the full cost concept is followed C. Never under the present circumstances. B. If the component division's cost increase 10% D. Never 53. Which price concept is appropriate to this situation and benefits both divisions? A. Full cost price B. Minimum Price C. Market Price D. Full Cost plus price