Use the Information Below to Answer the Following Question(s)

question 177

Multiple Choice

Use the information below to answer the following question(s) .Soft Cushion Company is highly decentralized.Each division is empowered to make its own sales decisions.The Assembly Division can purchase cushion stuffing from the Production Division or from external suppliers.The Production Division has been the major supplier of stuffing in recent years.The Assembly Division has announced that two external suppliers will be used to purchase the stuffing at $20 per kilogram for the next year.The Production Division recently increased its unit price to $40.The manager of the Production Division presented the following information; variable cost $32, fixed cost $8, to top management in order to attempt to force the Assembly Division to purchase the stuffing internally.The Assembly Division purchases 20,000 kg per month.
-The seller of product A has idle capacity and has no alternative use for the excess capacity.The seller can sell each unit at $10.Outlay cost is $2.What is the opportunity cost of selling internally?

• A)$0
• B)$8
• C)$10
• D)$12
• E)$16

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Definitions:

Barista

A person skilled in making and serving coffee drinks, typically working in a coffee shop.

Tasks

Specific pieces of work or activities to be completed, usually part of a larger project or goal.

Relationships

Connections or associations between individuals or groups based on social, emotional, or professional ties.

Team Management

Team Management involves coordinating and guiding a group of individuals towards achieving specific objectives, fostering collaboration and maximizing team performance.