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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.
-What would be the monthly operating advantage (disadvantage) of purchasing the goods internally assuming the external supplier increased its price to $50 per kilogram and the Production Division is able to utilize facilities for other operations, resulting in a monthly cash-operating savings of $30 per kilogram?
Spurious Relationships
Relationships where two variables appear to be related due to a coincidence or a third, unseen factor, rather than a direct cause-and-effect link.
Researcher
An individual who systematically investigates and studies materials and sources to establish facts and reach new conclusions.
Online Experiments
Research studies conducted over the internet, allowing for the collection of data from a wide and diverse group of participants.
Causality
The relationship between cause and effect, where one variable is demonstrated to directly cause a change in another variable.
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