Materials used by Jefferson Company in producing Division C's product are currently purchased from outside suppliers at a cost of $10 per unit. However, the same materials are available from Division A. Division A has unused capacity and can produce the materials needed by Division C at a variable cost of $8.50 per unit. A transfer price of $9.50 per unit is negotiated and 30,000 units of
material are transferred, with no reduction in Division A's current sales. How much would Division C's income from operations increase?
A) $0
B) $90,000
C) $15,000
D) $60,000
C
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When time is an important consideration, which data collection method is best?
A) mail surveys B) drop-off surveys C) in-home interviews D) telephone surveys E) in-office surveys
The Northern co. manufactures office chairs. The following has the following information for June:Refer to the original data. If the company's sales for June are actually 1,500 chairs, the margin of safety is
a.72 chairs. b.62 chairs. c.52 chairs. d.42 chairs. e.None of the answers are correct.
Which of the following statements about customer service is true? A. Customers must initiate the requirement that customer-service procedures be implementedthroughout an organization
B. An excellent customer-service reputation cannot give the organization a competitive edgein the marketplace. C. Customer service is a problem-solving function that should exist only when a customerreports a problem. D. Customer service will not receive the attention it deserves without the support of the organization's top management.
Amtrak is considering two pricing strategies for its service. One is to price its train tickets so that it is less expensive to travel on weekends than during the week when there is heavy business travel, which illustrates ____ pricing. The second is to price its train tickets so that the further away the travel date, the greater the discount, which is best described as ___.
A. demand-based; secondary market pricing B. demand-based; differential pricing C. demand-based; periodic discounting D. cost-plus; secondary markup E. cost-plus; periodic discounting