By-products normally have significant sales value in comparison with other jointly-produced products emerging at the split-off point

The Can Division of Fruit Products Inc. manufactures and sells tin cans externally for $0.60 per can. Its unit variable costs and unit fixed costs are $0.24 and $0.08, respectively. The Packaging Division wants to purchase 50,000 cans at $0.32 a can. Selling internally will save $0.02 a can.

Assuming the Can Division has sufficient capacity, what is the minimum transfer price it should accept? a) $0.30 b) $0.32 c) $0.22 d) $0.24

Which of the following categories is particularly affected by low barriers to entry?

A) microchip processors B) automobile manufacturers C) professional services D) oil drilling