(Appendix 12A)Division T of Clocker Company Makes a Timer Which

question 13

Multiple Choice

(Appendix 12A) Division T of Clocker Company makes a timer which it sells for $30 to outside customers.The division has supplied the following data concerning the timer: Division S of Clocker Company is currently buying 5, 000 similar timers each month from an overseas supplier at $27 each.Division S would like to acquire its timers from Division T if the price is right. Suppose Division T is operating at capacity and can sell all of the timers it produces to outside customers at its usual selling price.If Division T meets the price of the overseas supplier and sells 5, 000 timers to Division S each month, the effect on the monthly net operating income of the company as a whole will be:

• A)increase of $15, 000
• B)decrease of $15, 000
• C)decrease of $60, 000
• D)increase of $10, 000

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Definitions:

Defensive Coping

Strategies used to protect oneself from psychological harm, involving denial or avoidance of stressors.

Resilience

The ability of an individual or system to adapt and recover quickly from difficulties or challenges.

Stress

Stress refers to the psychological and physiological response to perceived challenges or threats in the environment.

Perseverance

Perseverance is the persistence in doing something despite difficulty or delay in achieving success.