(Appendix 11A) Division a Makes a Part with the Following

question 24

Multiple Choice

(Appendix 11A) Division A makes a part with the following characteristics:
Division B, another division of the same company, would like to purchase 5,000 units of the part each period from Division A. Division B is now purchasing these parts from an outside supplier at a price of $24 each.
-Suppose that Division A is operating at capacity and can sell all of its output to outside customers at its usual selling price.If Division A agrees to sell the parts to Division B at $24 per unit,the company as a whole will be:

• A) better off by $5,000 each period.
• B) worse off by $15,000 each period.
• C) worse off by $5,000 each period.
• D) There will be no change in the profits of the company as a whole.

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Definitions:

Brain Wave

Oscillations of electrical potential between parts of the brain, visible on an EEG.

Beta Waves

Brainwaves that are associated with active, alert, and cognitive processing states of consciousness.

Electroencephalograph (EEG)

A diagnostic tool that records the electrical activity of the brain, important for identifying conditions such as epilepsy.

Sleep Spindles

Bursts of oscillatory brain activity visible on an EEG that occur during stage 2 of sleep and are thought to be involved in processing memory and learning.