Division P of Launch Corporation has the capacity for making 75,000 wheel sets per year and regularly sells 60,000 each year on the outside market. The regular sales price is $100 per wheel set, and the variable production cost per unit is $65. Division Q of Launch Corporation currently buys 30,000 wheel sets (of the kind made by Division P) yearly from an outside supplier at a price of $90 per wheel set. If Division Q were to buy the 30,000 wheel sets it needs annually from Division P at $87 per wheel set, the change in annual net operating income for the company as a whole, compared to what it is currently, would be:
A) $600,000
B) $225,000
C) $750,000
D) $135,000
E) $700,000
B) $225,000
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a. Valuation. b. Rights. c. Completeness. d. Existence.
An example of a firm's use of a different set of accounting principles for financial reporting and for income tax reporting is
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Which of the following is a feature of qualitative research in primary data collection?
A. It asks yes or no type questions. B. It uses statistics to analyze data. C. It relies on open-ended questioning. D. It asks closed-ended questions. E. It provides more representative samples of consumers.
The maximum value of a target firm to the buyer = the value to the seller - the value added by the buyer
Indicate whether the statement is true or false