The Jupiter Division of Space, Inc Assume That Jupiter Cannot Sell Any Additional Crystals Externally

question 82

Multiple Choice

The Jupiter Division of Space, Inc. produces dilithium crystals. One-third of its output is sold to the Antari Division, and the remainder is sold externally. Jupiter's estimated sales and cost data for the coming year are: $\begin{array}{lrr}&\text { Antari Division }&\text { External Sales }\\\text { Units } & 12,500 & 25,000 \\\text { Sales } & \$ 18,750 & \$ 50,000 \\\text { Variable costs } & 12,500 & 25,000 \\\text { Fixed costs } & 3,750 & 7,500\end{array}$ Assume that Jupiter cannot sell any additional crystals externally. If the Antari Division has an opportunity to buy from an outside supplier at $1.40 per crystal and Jupiter refuses to meet this price, the company as a whole will be:

• A) $1,250 better off
• B) $3,750 worse off
• C) $6,250 better off
• D) $5,000 worse off

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Definitions:

Standard Deviation

A measure of the amount of variation or dispersion of a set of values, indicating how spread out the values are from the mean.

Bottling Machine

Equipment used for filling bottles with liquid products, such as water, soda, or beer, and sealing them for distribution.

Normal Model

A type of statistical distribution, also known as the Gaussian distribution, characterized by a symmetric bell-shaped curve.

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