Division Delta of Golvin Corporation makes and sells a single product which is used by manufacturers of fork lift trucks. Presently it sells 9,000 units per year to outside customers at $57 per unit. The annual capacity is 10,000 units and the variable cost to make each unit is $32. Division Echo of Golvin Corporation would like to buy 2,000 units a year from Division Delta to use in its products. There would be no cost savings from transferring the units within the company rather than selling them on the outside market. What should be the lowest acceptable transfer price from the perspective of Division Delta?

A) $57.00 per unit
B) $19.50 per unit
C) $44.50 per unit
D) $32.00 per unit

A price floor set above the equilibrium price causes a surplus in the market.

In the context of reinforcement theory, schedules in which the amount of time that must pass before a reward is given can change from one reward period to another are termed:

A) fixed interval schedules.
B) variable interval schedules.
C) fixed ratio schedules.
D) variable ratio schedules.

The recognition clause in a lease allows landlords to adjust rent according to the consumer price index or some other economic scale.

________ involves defining the firm's marketing mix variables so that target customers have a clear, distinctive, desirable understanding of the firm's offerings relative to competitors' offerings.

A) Processing
B) Perceptualizing
C) Positioning
D) Proportioning
E) Prospecting

What is at the core of the definition of total quality management (TQM) ?

A) Visionary leadership
B) Employee satisfaction
C) Pride
D) Continuous improvement
E) Motivation