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

question 9

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(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: (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 3, 200 units.If the DVD Division sells 1, 000 DVDPs to MaxiSound for $170 each, the effect on the monthly profits of Sound Company as a whole will be a: A) $9, 000 decrease B) $74, 000 decrease C) $20, 000 increase D) $11, 000 increase 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 3, 200 units.If the DVD Division sells 1, 000 DVDPs to MaxiSound for $170 each, the effect on the monthly profits of Sound Company as a whole will be a:


Definitions:

Constant Dollar

A term used to describe a way of measuring economic statistics in which values are adjusted for inflation, allowing for comparison across different times.

Real Price

The price of goods or services adjusted for inflation, reflecting the actual purchasing power of money.

Cellulose

A complex carbohydrate that forms the primary structural component of plant cell walls and is not digestible by humans.

Carbohydrates

Organic compounds made up of carbon, hydrogen, and oxygen, serving as a major energy source and structural component of living organisms.

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