The Following Information Is Available for the Two Divisions of MAC

question 118

Essay

The following information is available for the two divisions of MAC Co.: $$\begin{array} { | l | r | } \hline \text { Division } A & \\\hline \text { Selling price to outside market } & \$ 55 \\\hline \text { Standard unit-level costs } & 35 \\\hline \text { Dwision B } & \\\hline \text { Selling price of finished product } &\$95 \\\hline \text { Standard unit-level costs for Division B } &2 5 \\\hline\end{array}$$
Division A has no excess production capacity.Required:
1)In order to ensure the best use of the productive capacity of A,what transfer price should be set by Division A and what effect does this transfer price have on the overall margin for the company? Is the answer goal congruent under the general rule?
2)Should Division B accept a special order for its product if the selling price is reduced to $70.Use your answer from #1 and explain.3)Would your answer to #2 change if Division A had excess capacity? Explain.

Comprehend the relationship between social inequality and access to resources including food.

Appreciate the historical and theoretical perspectives provided by urban sociologists in understanding city life and dynamics.

Distinguish between preindustrial and industrial cities in terms of size, density, and social complexity.

Understand the critiques of the Chicago school and its implications on urban development.

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Definitions:

Symptoms

Signs or indications of a disease or condition experienced by an individual.

Away From

A phrase indicating movement or direction leading from a specific point or location.

Middle

Being at a point or position equally distant from the sides, edges, or ends; centrally located.

Abnormal

Deviating from what is normal or usual, typically in a way that is undesirable or worrying.