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The DVD Division of Sound Company Makes and Sells Compact

question 22

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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:
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
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:


Definitions:

Organic Product

A chemical compound of organic origin or produced by living organisms.

Gaseous HCl

Hydrochloric acid in its gaseous form, commonly used in chemical synthesis and processing.

Propanoic Acid

An organic compound, a colorless, oily liquid with a pungent odor, used industrially in the production of esters, as a preservative, and in cosmetics.

Amino Acid

Organic molecules used as the building blocks of proteins, characterized by an amino group, a carboxyl group, and a specific side chain attached to a central carbon atom.

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