Travers Corporation Is Working at Full Production Capacity Producing 10,000

question 46

Essay

Travers Corporation is working at full production capacity producing 10,000 units of a unique product, RST. Manufacturing costs per unit for RST follow:
The unit manufacturing overhead cost is based on a variable cost per unit of $2 and fixed costs of $30,000 (at full capacity of 10,000 units). The non-manufacturing costs, all variable, are $4 per unit, and the selling price is $20 per unit. A customer, Blanding Company, has asked Travers to produce 2,000 units of a modification of RST to be called XYZ. XYZ would require the same manufacturing processes as RST. Blanding Company has offered to share equally the non-manufacturing costs with Travers. XYZ will sell at $15 per unit.
Required:

Describe the effects of normative and informational influence on individuals' behavior in groups.

Evaluate the impact of goal isomorphism on goal attainment within groups.

Understand the factors that lead to intergroup conflict and strategies for its resolution.

Comprehend the principles of social cohesion and the factors influencing it.

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Definitions:

Bad Debt Expense

An expense recorded to account for receivables that are expected not to be collected.

Accounts Receivable

Money owed to a business by its clients or customers for goods or services that have been delivered or used but not yet paid for.

Net Sales

The total revenue a company generates from sales after subtracting returns, allowances, and discounts.

Increase in Accounts Receivable

A situation where the amount of money owed by customers to a company grows due to sales on credit outpacing payments received.