Division X Has Asked Division K of the Same Company

question 13

Essay

Division X has asked Division K of the same company to supply it with 5,000 units of part L433 this year to use in one of its products.Division X has received a bid from an outside supplier for the parts at a price of $26.00 per unit.Division K has the capacity to produce 30,000 units of part L433 per year.Division K expects to sell 26,000 units of part L433 to outside customers this year at a price of $30.00 per unit.To fill the order from Division X,Division K would have to cut back its sales to outside customers.Division K produces part L433 at a variable cost of $21.00 per unit.The cost of packing and shipping the parts for outside customers is $2.00 per unit.These packing and shipping costs would not have to be incurred on sales of the parts to Division X.
Required:
a.What is the range of transfer prices within which both the Divisions' profits would increase as a result of agreeing to the transfer of 5,000 parts this year from Division X to Division K?
b.Is it in the best interests of the overall company for this transfer to take place? Explain.
(Note: Due limitations in fonts and word processing software,> and < signs must be used in this solution rather than "greater than or equal to" and "less than or equal to" signs. )

Identify effective punishment schedules and their impact on behavior.

Understand the concepts of flooding and other behavioral therapy techniques.

Grasp the physiological responses associated with stress and fear in flooding therapy.

Recognize the influence of observed aggression on behavior.

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Definitions:

Marital Inequality

Disparities or imbalances of power, responsibilities, or resources between spouses within a marriage.

Distancing

The act of creating emotional or physical space from others; it can be a coping mechanism or a part of social dynamics.

Positive Comparisons

The act of comparing oneself or others in a way that highlights strengths and achievements, often to boost self-esteem or motivation.

Deepest Secrets

Personal, highly confidential information that an individual chooses to keep hidden from others.