1. Assume that the Yellow Division management is not interested in making the modified YT-100 for...

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1. Assume that the Yellow Division management is not interested in making the modified YT-100 for internal transfer to the Blue Division. From the perspective of the company as a whole, should the Blue Division purchase the component externally and quote on the new business? Provide quantitative support, including a calculation of the incremental income that the Blue Division would generate from the new order. Current sales will not be affected by the new order. The selling price of $90.00 will apply to the new order only. 1. Assume that the Yellow Division management is not interested in making the modified YT-100 for internal transfer to the Blue Division. From the perspective of the company as a whole, should the Blue Division purchase the component externally and quote on the new business? Provide quantitative support, including a calculation of the incremental income that the Blue Division would generate from the new order. Current sales will not be affected by the new order. The selling price of $90.00 will apply to the new order only.

Answer rating: 100% (QA)

1 Incremental Revenue Calculation The incremental revenue is the additional revenue generated from t... View the full answer