(Appendix 12A)The DVD Division of Sound Company Makes and Sells

question 5

Multiple Choice

(Appendix 12A) The DVD Division of Sound Company makes and sells compact DVD players (DVDP) that it presently sells to outside customers.Budgeted costs next month for the DVD Division are as follows: MaxiSound, another division of Sound Company, would like to buy 1, 000 of the DVDPs from the DVD Division.An outside supplier has offered to sell similar DVDPs to MaxiSound for $170 each. Assume that DVD Division's monthly production capacity is 2, 800 units.If the DVD Division sells 1, 000 DVDPs to MaxiSound for $170 each, the monthly effect on the profits of DVD Division will be a:

• A)$15, 000 decrease
• B)$42, 000 decrease
• C)$50, 000 increase
• D)no change

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Definitions:

Material Resources

Physical or tangible assets that are used in the production or supply of goods and services.

Survivors

Individuals or entities that remain active or viable after a particularly challenging period or event, often having adapted to new conditions.

Selective Perception

The cognitive process by which individuals perceive what they want in messages while ignoring opposing viewpoints.

Social Influence

The effect that the words, actions, or mere presence of other people have on an individual's thoughts, feelings, attitudes, or behaviors.