The Axle Division of Becker Company Produces Axles for Off-Road

question 4

Multiple Choice

The Axle Division of Becker Company produces axles for off-road sport vehicles.One-third of Axle's output is sold to an internal division of Becker;the remainder is sold to outside customers.Axle's estimated operating profit for the year is: The internal division has an opportunity to purchase 10,000 axles of the same quality from an outside supplier on a continuing basis.The Axle Division cannot sell any additional products to outside customers.Should the Becker Company allow its internal division to purchase the axles from the outside supplier at $13.00 per unit?

• A)No;making the axles will save Becker $15,000.
• B)Yes;buying the axles will save Becker $15,000.
• C)No;making the axles will save Becker $30,000.
• D)Yes;buying the axles will save Becker $30,000.

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Definitions:

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A measure of volume used primarily in agriculture, equivalent to approximately 35.24 liters, often used to quantify wheat production or trade.

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Approaches used to reach an agreement or compromise between parties with different needs, interests, or objectives, often involving communication and problem-solving techniques.