Spring Corp. has two divisions, Daffodil and Tulip. Daffodil produces a gadget that Tulip could use in its production. Tulip currently purchases 100,000 gadgets for $12.50 on the open market. Daffodil's variable costs are $6 per widget while the full cost is $9.35. Daffodil sells gadgets for $13 each. If Daffodil is operating at full capacity, what would be the maximum transfer price Tulip would pay internally ? A. $6.00 B. $9.35 C. $12.50 D. $13.00

Spring Corp. has two divisions, Daffodil and Tulip. Daffodil produces a gadget that Tulip could use in its production. Tulip currently purchases 100,000 gadgets for $12.50 on the open market. Daffodil's variable costs are $6 per widget while the full cost is $9.35. Daffodil sells gadgets for $13 each. If Daffodil is operating at full capacity, what would be the minimum transfer price Tulip would pay internally ? A. $6.00 B. $9.35 C. $12.50 D. $13.00

Diskette Company sells on average 200 discs per week. Average Purchase-order lead time is 1-1/2 weeks and the economic-order quantity is 450 units. What is the level of safety stock if the average lead time could be as high as 2 1/2 weeks?

a. 200 units

b. 300 units

c. 750 units

d. 1,125 units

Diskette Company sells on average 200 discs per week. Average Purchase-order lead time is 1-1/2 weeks and the economic-order quantity is 450 units. What is the reorder point if the average usage could be as high as 500 discs per week?

a. 200 units

b. 300 units

c. 750 units

d. 1,125 units