The Uniforms Division of Baseball Company Has Just Revised Its

question 64

Essay

The Uniforms Division of Baseball Company has just revised its actual cost data for 2016. Uniforms Division transfers goods to the Sport Division. Sport Division can buy the same goods in the open market for $122 each. Uniforms's new cost data are as follows:
Current production is 200,000 units, and the Uniforms Division has a capacity of 300,000 units.
Required:
a. What is the lowest price the Uniforms Division should charge for the internal transfers of its goods?
b. What is the highest price the Sport Division should pay for the units?
c. Give the primary reason why the Uniforms Division should reduce its price.

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Definitions:

Startup Capital

Initial funding needed to start a business, which may cover costs such as product development, marketing, and operations.

Ten-inch Pizzas

A size specification for pizzas, indicating that the diameter of the pizza measures ten inches.

Number Expression

A mathematical statement used to represent a quantity or to carry out a calculation.

Alma Mater

A school, college, or university from which one has graduated or attended.