The Axle Division of Becker Company Produces Axles for Off-Road

question 37

Multiple Choice

The Axle Division of Becker Company produces axles for off-road sport vehicles.One-third of Axle's 30,000 unit output is sold to an internal division of Becker; the remainder is sold to outside customers.Axles' estimated operating profit for the year is: The internal division has an opportunity to purchase 10,000 axles of the same quality from an outside supplier on a continuing basis.The purchase price would be $13.00.If the Axle Division is now operating at full capacity and can sell all its units to outside customers at the present selling price,what is the minimum selling price that Axle should accept from the internal division?

• A)$10.00
• B)$13.00
• C)$15.00
• D)$20.00

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Definitions:

Relationship Conflict

A type of conflict that arises from interpersonal incompatibilities, including differences in personalities, values, or preferences, often leading to tension or emotional disputes.

Conflict Process Model

A framework that outlines the sequence of events and factors that lead to the development, escalation, and resolution of a conflict.

Conflict Outcomes

The consequences or results of a conflict, which can include resolution, escalation, or continuing stalemate, affecting relationships, productivity, and work environment.

Sources of Conflict

The origins or reasons behind disagreements or disputes between parties, which can vary from personal differences to resource scarcity.