The Assembly Division of Canadian Car Company Has Offered to Purchase

question 46

Essay

The Assembly Division of Canadian Car Company has offered to purchase 90,000 batteries from the Electrical Division for $104 per unit.At a normal volume of 250,000 batteries per year, production costs per battery are as follows:
The Electrical Division has been selling 250,000 batteries per year to outside buyers at $136 each.Capacity is 350,000 batteries per year.The Assembly Division has been buying batteries from outside sources for $130 each.Required:
a.Should the Electrical Division manager accept the offer as is, make a counter offer, or reject the offer? Explain.
b.From the company's perspective, will the internal sales be of any benefit? Explain

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Definitions:

Negative Messages

Communications that convey displeasing, disappointing, or otherwise unfavorable information to the receiver.

Positive One

Could refer to a positive aspect, individual, or outcome that stands out or is singular in context but without a specific reference, it's not a recognized key term. NO.

Attitudes

This term encompasses the various predispositions or outlooks an individual holds towards different objects, people, or situations, shaped by experience and influencing behavior.

Beliefs

Convictions or acceptances that something exists or is true, especially without proof.