Division A makes a part with the following characteristics: Production capacity in units 32,900 units Selling price to outside customers $ 22 Variable cost per unit $ 18 Total fixed costs $ 103,400 Division B, another division of the same company, would like to purchase 15,200 units of the part each period from Division A. Division B is now purchasing these parts from an outside supplier at a price of $20 each. Suppose that Division A has ample idle capacity to handle all of Division B's needs without any increase in fixed costs and without cutting into sales to outside customers. If Division A refuses to accept the $20 price internally and Division B continues to buy from the outside supplier, the company as a whole will be:
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Division A makes a part with the following characteristics: Production capacity in units 32,900 units Selling price to outside customers $ ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
Internal control is a process designed to ensure reliable financial reporting. effective and efficient operations. compliance with applicable laws and regulations. Internal control is designed to ensure all of the items described in the answers.
Answers (1)
Create, Inc., a domestic corporation, owns 100% of Vinyl, Ltd., a foreign corporation and Digital, Inc., a domestic corporation. Create also owns 12% of Record, Inc., a domestic corporation.
Answers (1)
What is government fiscal policy?
Answers (1)
Sebastian is the marketing manager of a local restaurant. He has decided to set up a booth at an outdoor concert being held at the city park to pass out free samples of food and to give attendees coupons that can be used at the restaurant.
Answers (1)
The gross domestic product of Ritzland during a particular year was $120,000. If the expenditure on investment was $16,000, the expenditure incurred by the government was $35,000, the value of exports was $10,000, and the value of imports was
Answers (1)
New Questions in Business
On January 2, year 2, Air, Inc. agreed to pay its former president $300,000 under a deferred compensation arrangement. Air should have recorded this expense in year 1 but did not do so.
Answers (1)
A home improvement firm has quoted a price of? $9,800 to fix up? eric's backyard. five years? ago, eric put? $7,500 into a home improvement account that has earned an average of? 5.25% per year.
Answers (1)
A budget surplus a. exists when government spending is greater than tax revenues. b. causes government debt to increase. c. occurs when the government has debt equal to zero. d. reduces the government's debt.
Answers (1)
Monique was looking for a venue for her wedding reception. When she visited one potential location, she noticed that the landscaping was not complete, and there was stained carpet in the lobby.
Answers (1)
A monthly fixed rate mortgage payment--- A. could change. B. never changes. C. increases annually. D. decreases annually.
Answers (1)