(Appendix 11A) Brull Products, Inc

question 57

Multiple Choice

(Appendix 11A) Brull Products, Inc., has a Sensor Division that manufactures and sells a number of products, including a standard sensor. Data concerning that sensor appear below:
The Safety Products Division of Brull Products, Inc needs 6,000 special heavy-duty sensors per year. The Sensor Division's variable cost to manufacture and ship this special sensor would be $60 per unit. Because these special sensors would requires more manufacturing resources than the standard sensor, the Sensor Division would have to reduce its production and sales of standard sensors to outside customers from 56,000 units per year to 46,400 units per year.
-What is the total contribution margin on sales to outside customers that the Sensor Division would give up if it were to make the special sensors for the Safety Products Division?

• A) $720,000
• B) $353,280
• C) $220,800
• D) $138,000

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Definitions:

Pharynx

A part of the throat situated behind the mouth and nasal cavity, crucial for both the respiratory and digestive systems.

Bronchus

A major air passage of the lungs that diverges from the windpipe, allowing the flow of air in and out.

Body Surface

The body surface refers to the outermost layer of an organism's body, including the skin in humans, which serves as a protective barrier against the environment.

Tracheal Tubes

A network of air tubes in insects and some terrestrial arthropods that allow for efficient gas exchange directly with body tissues.