Jefferson Company Has Two Divisions: Jefferson Bottles and Jefferson Juice

question 4

Essay

Jefferson Company has two divisions: Jefferson Bottles and Jefferson Juice. Jefferson Bottles makes glass containers, which it sells to Jefferson Juice and other companies. Jefferson Bottles has a capacity of 10 million bottles a year. Jefferson Juice currently has a capacity of 3 million bottles of juice per year. Jefferson Bottles has a fixed cost of $100,000 per year and a variable cost of $0.01/bottle. Jefferson Bottles can currently sell all of its output at $0.03/bottle.
Required:
a. What should Jefferson Bottles charge Jefferson Juice for bottles so that both divisions will make appropriate decentralized planning decisions?
b. If Jefferson Bottles can only sell 5 million bottles to outside buyers, what should Jefferson Bottles charge Jefferson Juice for bottles so that both divisions will make appropriate decentralized planning decisions?

Understand the role of maternal and environmental factors in prenatal and postnatal development.

Describe the process and stages of physical maturation from birth through adolescence.

Explain the concept of attachment and its importance in infant development.

Distinguish between innate behaviors and those learned through interaction with the environment.

---

Definitions:

Units

Basic measures of quantity or amount in specific contexts, such as inventory units in manufacturing or business.

Medical Supplies

Items used in the medical field for treatment, diagnosis, or preventive care, including bandages, syringes, and diagnostic kits.

Flexible Budget

A budget that adjusts or flexes with changes in volume or activity.

Client-Visits

The act of visiting clients either for business development, maintaining relationships, or providing support and services.