Giga-Stuff, Inc -Refer to the Figure

question 100

Multiple Choice

Giga-Stuff, Inc. has a number of divisions. One division, Sophistosand, makes component X, which is used in the manufacture of DVD players. Another division, Videostuff, makes DVD players and needs 60,000 units of component X per year. Sophistosand incurs the following costs for one unit of component X:
Sophistosand has the capacity to make 400,000 units of component X per year but, due to a soft market, plans to produce and sell only 320,000 units next year. Videostuff currently buys component X from an outside supplier for $2.50 each (the same price that Sophistosand receives) .
$$\begin{array} { l r } \text { Direct materials } & \$ 0.30 \\\text { Direct labour } & 0.15 \\\text { Variable overhead } & 0.70 \\\text { Fixed overhead } & 1.00 \\\text { Total } & \$ 2.15\end{array}$$
-Refer to the Figure.Assume that Sophistosand and Videostuff have agreed on a transfer price of $2.20.What is the total benefit for Giga-Stuff,Inc.?

• A)$18,000
• B)$63,000
• C)$69,000
• D)$81,000

---

Definitions:

Archetypes

Universal, symbolic images that appear across cultures and literature, representing fundamental human motifs of our experience as we evolve.

The Shadow

A term in Jungian psychology that refers to an unconscious aspect of the personality which the conscious ego does not identify in itself, often embodying traits one dislikes or fears.

Collective Unconscious

A concept proposed by Carl Jung referring to the part of the unconscious mind that is derived from ancestral memory and experience, shared among all humans.

Controversial Aspect

A facet or element of a subject, issue, or topic that leads to disagreements, differing opinions, or debates.