Division P of Turbo Corporation Has the Capacity for Making

question 125

Multiple Choice

Division P of Turbo Corporation has the capacity for making 75,000 wheel sets per year and regularly sells 60,000 each year on the outside market.The regular sales price is $100 per wheel set,and the variable production cost per unit is $65.Division Q of Turbo Corporation currently buys 30,000 wheel sets (of the kind made by Division P) yearly from an outside supplier at a price of $90 per wheel set.Division Q would like to buy the 30,000 wheel sets it needs annually from Division P at $87 per wheel set.What would be the change in annual operating income for the company as a whole,compared to what it is currently?

• A) $135,000.
• B) $225,000.
• C) $600,000.
• D) $750,000.

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Definitions:

Adversarial System

A legal system where two opposing parties present their case to an impartial judge or jury, common in common law jurisdictions.

Extra-Judicial Activity

Actions or activities conducted outside the formal judicial system or without legal authority, often implying a lack of fairness or legal oversight.

Public Defender

A lawyer appointed by the court to represent defendants who cannot afford to hire an attorney, ensuring their right to legal representation.

Plea Bargains

An agreement in a criminal case between the prosecutor and defendant, where the defendant agrees to plead guilty to a particular charge in return for some concession from the prosecutor.