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 A's income from operations increase?
A) $0
B) $90,000
C) $30,000
D) $60,000


C

Business

You might also like to view...

Raoul is an illiterate who does not have proper skills for any job. As a result, he is unable to find permanent employment. As a last resort, Raoul starts a diner in his home to earn a regular income for his family. In the given scenario, Raoul most likely started the diner because it offered _____.

A. greater flexibility B. a challenge C. a chance of survival D. independence

Business

The life cycle theory of leadership advocates that the optimal combination of leader behavior in the R4 stage is

A. negotiating. B. selling. C. delegating. D. telling. E. participating.

Business

Randy Baca resides with her two children in a two?bedroom apartment owned by Lakefront, Inc The hot water in the apartment is too hot for Randy to touch, and she has complained to Lakefront and the manager. Her six?year old daughter is severely scalded when she tries to draw water for her bath. Which of the following is correct?

A) Lakefront will be held liable for the injuries. B) Lakefront will not be held liable since their obligation is only to furnish hot water under a warranty of habitability. C) Lakefront will not be held liable because Baca should have moved out. D) None of the above

Business

The ________ allows an individual filing a complaint to have a jury decide whether he or she may recover punitive damages (in addition to lost wages and benefits) for emotional injuries caused by discrimination.

A. Civil Rights Act of 1964 B. Americans with Disabilities Act C. Age Discrimination in Employment Act D. Civil Rights Act of 1991 E. Civil Rights Act of 1871

Business