Sugar Company Has Two Divisions,Lenox and Berkshire

question 126

Essay

Sugar Company has two divisions,Lenox and Berkshire.Lenox produces an item that Berkshire could use in its production.Berkshire currently is purchasing 100,000 units from an outside supplier for $43 per unit.Lenox is currently operating at full capacity of 750,000 units and has variable costs of $28 per unit.The full cost to manufacture the unit is $35.Lenox currently sells 750,000 units at a selling price of $44 per unit.
a.What will be the effect on Sugar Company's operating profit if the transfer is made internally?
b.What will be the change in profits for Lenox if the transfer price is $40 per unit?
c.What will be the change in profits for Berkshire if the transfer price is $40 per unit?

Comprehend the role and effects of government spending and taxation in fiscal policy.

Recognize the historical context and evolution of fiscal policy and national debt.

Analyze the relationship between fiscal policy, interest rates, and the federal budget deficit.

Identify the conditions under which budget deficits are deemed appropriate.

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Definitions:

Meiosis

A type of cell division that reduces the chromosome number by half, producing four haploid cells, crucial for sexual reproduction.

Figure Panel

A component of scientific publications, consisting of a series of related illustrations or images presented together to convey data or results.

Telophase II

A stage in meiosis II, the second division of meiosis, where the chromosomes arrive at opposite poles, and the nuclear envelope re-forms around them, leading to the formation of four daughter cells.

Meiosis

A type of cell division that reduces the chromosome number by half, resulting in the production of four genetically unique gametes.