The Blade Division of Axe Company Produces Hardened Steel Blades

question 6

Multiple Choice

The Blade Division of Axe Company produces hardened steel blades.One-third of Blade's output is sold to the Forestry Products Division of Axe;the remainder is sold to outside customers.Blades' estimated operating profit for the year is: The Forestry Division has an opportunity to purchase 10,000 blades of the same quality from an outside supplier on a continuing basis.The Blade Division cannot sell any additional products to outside customers.Should the Axe Company allow its Forestry Division to purchase the blades from the outside supplier at $1.25 per unit?

• A)No;making the blades will save Axe $1,500.
• B)Yes;buying the blades will save Axe $1,500.
• C)No;making the blades will save Axe $2,500.
• D)Yes;buying the blades will save Axe $2,500.

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Definitions:

Type C Personality

Often described as a passive or stoic personality type that tends to suppress emotions, possibly associated with increased stress and susceptibility to illnesses.

Expressing Emotions

The act of conveying one's feelings to others through words, facial expressions, or other forms of communication.

TAT

Stands for Thematic Apperception Test, a psychological assessment tool where individuals create stories based on ambiguous pictures, aimed at uncovering their underlying motives, feelings, and attitudes.

Projective Tests

Psychological assessment tools where respondents project their unconscious thoughts and feelings onto ambiguous test stimuli.