Division S of Kracker Company makes a part that it sells to other companies. Data on...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Division S of Kracker Company makes a part that it sells to other companies. Data on that part appear below: Selling price on the intermediate market per 30 unit Variable costs per unit per 22 unit Fixed costs per unit (based on capacity) per 7. unit Capacity in units 50,000 units Division B, another division of Kracker Company, presently is purchasing 10,000 units of a similar product each period from an outside supplier for $28 per unit, but would like to begin purchasing from Division S. %24 %24 Fixed costs per unit (based on capacity) per unit Capacity in units 50,000 units Division B, another division of Kracker Company, presently is purchasing 10,000 units of a similar product each period from an outside supplier for $28 per unit, but would like to begin purchasing from Division S. Suppose that Division S can sell all that it can produce to outside customers. If Division S sells to Division B at a price of $28 per unit, the company as a whole will be: O worse off by $80,000 each period. Oworse off by $70,000 each period. Obetter off by $20,000 each period. worse off by $20.000 each period. Division S of Kracker Company makes a part that it sells to other companies. Data on that part appear below: Selling price on the intermediate market per 30 unit Variable costs per unit per 22 unit Fixed costs per unit (based on capacity) per 7. unit Capacity in units 50,000 units Division B, another division of Kracker Company, presently is purchasing 10,000 units of a similar product each period from an outside supplier for $28 per unit, but would like to begin purchasing from Division S. %24 %24 Fixed costs per unit (based on capacity) per unit Capacity in units 50,000 units Division B, another division of Kracker Company, presently is purchasing 10,000 units of a similar product each period from an outside supplier for $28 per unit, but would like to begin purchasing from Division S. Suppose that Division S can sell all that it can produce to outside customers. If Division S sells to Division B at a price of $28 per unit, the company as a whole will be: O worse off by $80,000 each period. Oworse off by $70,000 each period. Obetter off by $20,000 each period. worse off by $20.000 each period.
Expert Answer:
Answer rating: 100% (QA)
Effect of the decision Division S Loss of sales to outside ... View the full answer
Related Book For
Social Media Marketing A Strategic Approach
ISBN: 978-0538480871
1st edition
Authors: Melissa Barker, Donald I. Barker, Nicholas F. Bormann, Krista E. Neher
Posted Date:
Students also viewed these finance questions
-
Calculating (un)employment rates. In a Round numbers land, there are one million men and one million women of working age (15-64). Of the men, 740 000 are employed and 200 000 are outside the labour...
-
A company will sell Gizmos to consumers at a price of $112 per unit. The variable cost to produce Gizmos is $24 per unit. The company expects to sell 12,000 Gizmos to consumers each year. The fixed...
-
A seven-day Mexican cruise was advertised at a price of $1299 per person based on double occupancy. If the cruise was booked two months in advance, the price would be lowered to $935 per person. What...
-
1. Consider a local department store which only sells jeans (J) and sweaters (S). Jeans cost $20 and sweaters cost $30. For each of the examples below, graph the budget constraint our consumer faces,...
-
Refer to Exercise 6 on page 119 for a description of a study about walking speed. Exercise 6 In a double-blind study, 50 older adults who had difficulty keeping their balance and/or were slow walkers...
-
For the year ended December 31, 2017, Denkinger Electrical Repair Company reports the following summary payroll data. Ross earnings: Administrative salaries ...... $200,000 Electricians wages...
-
When is it appropriate to use the one-sample Z-test?
-
John Clais began operations as an event consultant on January 1, 2008. The trial balance columns of the work sheet on March 31 are as follows. Other data: 1. Supplies on hand total $500. 2....
-
Flounder Industries manufactures dining chairs and tables. The following information is available regarding the two products and their estimated use of cost drivers: Dining Chairs Tables Estimated...
-
Given a database of the results of an election, find the number of seats won by each party. There are some rules to going about this: There are many constituencies in a state and many candidates who...
-
Reading Coming to a new awareness of organizational culture, Edgar H.Schein: https://docs.google.com/document/d/15yKbiEIwu47U1OnyjYevwz9ly42o2PCi0x-Zz_4C-po/edit In the assigned reading from the...
-
Amanda has worked since June 1st, 2015 for Standard Enterprises, a small manufacturing company. Amanda earns a salary of $80,000 per year plus 6% vacation pay. On December 1st, 2023 Standard notifies...
-
Secret Spices, a European company, sold secret ingredients to Coca-Cola, a well-known US multinational company, and billed $30 million payable in six months. Secret Spices is concerned with the euro...
-
Dave purchased a rental property in 2019. The original cost of the building was $850,000, and its opening undepreciated capital cost (UCC) in 2023 was $684,816. The following income and expenses were...
-
Martson and Co. made the following journal entries: Accounts Receivable 25,000 Sales Revenue 25,000 Cost of Goods Sold 10,000 Inventory 10,000 What is Martson's gross profit from this sale?
-
A local arts organization spent $125,000 producing a new play last year. This year, it's going to spend $145,000. The organization's total annual budget is $500,000. What percentage of its budget is...
-
Explain the key principles identified by the Basel Committee that needs to be followed to ensure sound corporate governance. Link your explanation to the practical operation of a named bank.
-
As economic conditions change, how do banks adjust their asset portfolio?
-
During the week of February 9-15, 2001, the U.S. rose market cleared at a price of $1.00 per stem, and 4,000,000 stems were sold that week. During the week of June 5-11, 2001, the U.S. rose market...
-
What is the shutdown price when all fixed costs are sunk? What is the shutdown price when all fixed costs are nonsunk?
-
A market contains a group of identical price taking firms. Each firm has a marginal cost curve SMC(Q) = 2Q, where Q is the annual output of each firm. A study reveals that each firm will produce if...
-
The joint density function of two random variables \(X\) and \(Y\) is given by \[p_{X, Y}(x, y)= \begin{cases}\frac{x y}{9}, & 0 \leq x \leq 2,0 \leq y \leq 3 \\ 0, & \text { elsewhere }\end{cases}\]...
-
Define the correlation coefficient, \(ho_{X Y}\).
-
True or False. The autocorrelation function \(R\left(t_{1}, t_{2} ight)\) is the same as \(E\left[x\left(t_{1} ight) x\left(t_{2} ight) ight]\).
Study smarter with the SolutionInn App