The National Division of Roboto Company Is Buying 10,000 Widgets

question 99

Multiple Choice

The National Division of Roboto Company is buying 10,000 widgets from an outside supplier at $30 per unit. Roboto's Overseas Division, which is producing and selling at full capacity (12,000 units) , has the following sales and cost structure: $$\begin{array} { l r } \text { Sales price per unit } & \$ 45.00 \\\text { Variable cost per unit } & 22.50 \\\text { Fixed cost (at capacity) per unit } & 15.00\end{array}$$ If the Overseas Division meets the outside supplier's price and sells the 10,000 widgets to National, the effect on overall company profits will be:

• A) $75,000 higher
• B) $150,000 lower
• C) $300,000 higher
• D) $225.000 lower

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Definitions:

Audience

An audience is a group of people who gather either physically or virtually to watch, listen to, or read something, such as a performance, presentation, or publication.

Back-Up Plan

A predetermined alternative course of action or strategy to be used if the primary plan fails or becomes unviable.

Professional Demeanor

Professional Demeanor refers to the conduct or behavior that is considered appropriate and respectable in a workplace or professional setting.

Increased Confidence

A heightened sense of self-assurance and belief in one's ability to achieve success.