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Answer the following questions using the information below:
Calculate the Division operating profit for the Don's Cricket Bat Company which manufactures cricket bats.It has two divisions: the Bat Blade Division and the Assembly Division.The Bat Blade Division manufactures blades for the Assembly Division,which splices handles to the blades and sells the completed bats to retailers.The Bat Blade Division 'sells' blades to the Assembly Division.The market price for the Assembly Division to purchase a blade is $40.(Ignore changes in inventory. ) The fixed costs for the Bat Blade Division are assumed to be the same over the range of 20 000-50 000 units.The fixed costs for the Assembly Division are assumed to be $14 per bat at 50 000 units.
Costs per blade are:
Assembly's costs per completed bat are:
-Calculate and compare the difference in overall corporate net profit between Scenario A and Scenario B if the Assembly Division sells 50 000 blades for $120 each to customers.
Scenario A: Negotiated transfer price of $15 per blade
Scenario B: Market-based transfer price
Harassment
Unwanted conduct affecting the dignity of men and women in the workplace or social environment, often involving creating an intimidating, hostile, degrading, or offensive atmosphere.
Fondle
To touch or stroke gently and affectionately.
Self-esteem
An individual's subjective evaluation of their own worth or abilities; their overall sense of personal value.
Unemployment
The situation of being without a job while actively looking for work, often measured as a percentage of the workforce.
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