Wengert Products, Incorporated, Has a Motor Division That Manufactures and Sells

question 89

Multiple Choice

Wengert Products, Incorporated, has a Motor Division that manufactures and sells a number of products, including a standard motor. Data concerning that motor appear below: The Automotive Division of Wengert Products, Inc needs 8,000 special heavy-duty motors per year. The Motor Division's variable cost to manufacture and ship this special motor would be $20 per unit. Because these special motors require more manufacturing resources than the standard motor, the Motor Division would have to reduce its production and sales of standard motors to outside customers from 40,000 units per year to 27,200 units per year.What is the total contribution margin on sales to outside customers that the Motor Division would give up if it were to make the special motors for the Automotive Division?

• A) $336,000
• B) $537,600
• C) $860,160
• D) $755,200

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Definitions:

Problem-solving

The process of identifying a challenge or problem, analyzing the components, and creating solutions to address it.

Solving Problems

The process of identifying, analyzing, and finding solutions for challenges or obstacles.

Leaking Pipeline

A metaphor describing the continuous loss of individuals from a certain path or process, especially used to discuss the decrease in representation of minority groups in a progression, such as women in STEM fields.

Double Bind

A psychological predicament in which an individual receives two or more conflicting messages, wherein responding to one negates the ability to respond to the other(s).