Benjamin Manufacturing Company Has Two Divisions, X and Y

question 72

Essay

Benjamin Manufacturing Company has two divisions, X and Y. Division X prepares the steel for processing. Division Y processes the steel into the final product. No inventories exist in either division at the beginning or end of 2014. During the year, Division X prepared 80,000 lbs. of steel at a cost of $800,000. All the steel was transferred to Division Y where additional operating costs of $5 per lb. were incurred. The final product was sold for $3,000,000.
Required:

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Definitions:

Market-oriented Era

A period in business thought where the focus is on understanding and satisfying the needs and preferences of customers through research and market analysis.

Retailing-oriented Era

A period in business history marked by the dominant focus on retail activities, where selling direct to customers through various retail outlets was prioritized.

Production-oriented Era

A period in business where the focus was on production efficiency and product improvement, often at the expense of consumer needs and preferences.

Sales-oriented Era

A period in business history when companies prioritized selling their products and convincing consumers to buy, often regardless of actual customer need.