Question: Please help with this question, answer all parts and please show all of your work, don't answer if you are not sure how to do
Please help with this question, answer all parts and please show all of your work, don't answer if you are not sure how to do the question please. Truball Incorporated which manufactures sports equipment, consists of several operating divisions. Division A has decided to go
outside the company to buy materials because division B plans to increase its selling price for the same materials to $ Information
for division A and division follows:
Required:
Assume that division B cannot sell its materials to outside buyers. Calculate the net cost or benefit to the company as a whole if
Division A purchases the materials outside the company.
a Assume that division B can save $ in fixed costs if it does not manufacture the material for Division A Calculate the net
cost or benefit to the company as a whole for A to purchase outside the company.
b From the standpoint of the effect of the transaction on the company as a whole, should Division A purchase from the outside
market?
a Assume the situation in Requirement If the outside market value for the materials drops $ calculate the net cost or benefit to
the company as a whole for A to purchase outside the company.
b From the standpoint of the effect of the transaction on the company as a whole, should Division A purchase from the outside
market?
Complete this question by entering your answers in the tabs below.
Assume that division B cannot sell its materials to outside buyers. Calculate the net cost or benefit to the company as a whole
if Division A purchases the materials outside the company. Enter all the amounts as positive value.
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