Figure 12-8
Bostonian Inc.has a number of divisions,including Delta Division and ListenNow Division.The ListenNow Division owns and operates a line of MP3 players.Each year the ListenNow Division purchases component AZ in order to manufacture the MP3 players.Currently it purchases this component from an outside supplier for $6.50 per component.The manager of the Delta Division has approached the manager of the ListenNow Division about selling component AZ to the ListenNow Division.The full product cost of component AZ is $3.10.The Delta Division can sell all of the components AZ it makes to outside companies for $6.50.The ListenNow Division needs 18,000 component AZs per year; the Delta Division can make up to 60,000 components per year.
Refer to Figure 12-8.
Definitions:
Fine Print
The smaller, often less noticeable text in a contract or document that includes important details and stipulations.
Marijuana Seeds
The seeds from the cannabis plant, which can be cultivated to produce marijuana plants.
Enforceable
A term that describes a legal agreement or contract that can be upheld and compelled by the law.
Illegal
Activities or actions that are forbidden by law and punishable by fines, penalties, or imprisonment.
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