Division S of Kracker Company Makes a Part That It

question 187

Multiple Choice

Division S of Kracker Company makes a part that it sells to other companies. Data on that part appear below: Division B, another division of Kracker Company, presently is purchasing 10,000 units of a similar product each period from an outside supplier for $28 per unit, but would like to begin purchasing from Division S.Suppose that Division S can sell all that it can produce to outside customers. If Division S sells to Division B at a price of $28 per unit, the company as a whole will be:

• A) worse off by $80,000 each period.
• B) worse off by $70,000 each period.
• C) better off by $20,000 each period.
• D) worse off by $20,000 each period.

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Definitions:

Unhurried

A pace or speed that is relaxed and not rushed, allowing for careful attention to detail or relaxation.

Solid Foods

Foods that are not liquid or fluid; typically introduced to an infant’s diet around the age of 6 months to provide additional nutrients.

Vitamin C Deficiency

A condition caused by insufficient vitamin C intake, leading to symptoms such as fatigue, gum inflammation, and skin issues.

Spongy Gingiva

A condition where the gums are soft, swollen, and may bleed easily, often a sign of gum disease or infection.