There is a mistake in number 15 . the correct answer should be 1 & 3 16 . ( TCO 8 ) The seller of Product A has no idle capacity and can sell all it can produce at $ 25 per unit . Outlay cost is $ 10 . What is the opportunity cost , assuming the seller ………? ( Points : 5 ) 16 . ( TCO 8 ) Division A sells soybean paste internally to Division B , which in turn , produces soybean burgers that sell for $ 5 per pound . Division A incurs costs of $ 0.75 per pound while Division B incurs additional costs of $ 2.50 per pound . Which of the following formulas correctly reflects the company ' s operating income per pound ? ( Points : 5 ) 16 . ( TCO 8 ) Division A sells soybean paste internally to Division B , which in turn , produces soybean burgers that sell for $ 5 per pound . Division A incurs costs of $ 0.80 per pound while Division B incurs additional costs of $ 3 per pound . Which of the following formulas correctly reflects the company ' s operating income per pound ? ( Points : 5 ) 17 . ( TCO 8 ) When companies do not want to use market prices or find it too costly , they typically use ________ prices , even though suboptimal decisions may occur . ( Points : 5 ) 17 . # TCO 8 # A benefit of using a market-based transfer price is the ( Points : 5 ) economic viability and profitability of each division can be evaluated individually . 18 . ( TCO 9 ) To guide cost allocation decisions , the benefits-received criterion : ( Points : 5 ) 19 . ( TCO 9 ) The Hassan Corporation has an Electric Mixer Division and an Electric Lamp Division . Of a $ 20,000,000 bond issuance , the Electric Mixer Division used $ 14,000,000 and the Electric Lamp Division used $ 6,000,000 for expansion . Interest costs on the bond totaled $ 1,500,000 for the year . What amount of interest costs should be allocated to the Electric Mixer Division ? ( Points : 5 ) 20 . ( TCO 10 ) The net present value method focuses on : ( Points : 5 ) 20 . ( TCO 10 ) An important advantage of the net-present-value method of capital budgeting over the internal rate-of-return method is ( Points : 5 ) the net present values of individual projects can be added to determine the effects of accepting a combination of projects .