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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?
Divergent Thinking
An approach or technique adopted to produce innovative ideas through the examination of numerous potential answers.
Convergent Thinking
A cognitive process in which multiple pieces of information are combined to solve a problem or come up with a single, correct solution.
Functional Fixedness
A cognitive bias that limits a person to use an object only in the way it is traditionally used, hindering the ability to see alternative uses.
Standardization
The development of uniform procedures for administering and scoring a test, and the creation of norms (performance standards) for the test.
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