Reference no: EM131774688
Altoona Corporation has two divisions, Hinges and Doors, which are both organized as profit centers; the Hinge Division produces and sells hinges to the Door Division and to outside customers. The Hinge Division has total costs of $39, $24 of which are variable. The Hinge Division is operating significantly below capacity and sells the hinges for $54.
The Door Division has received an offer from an outsider vendor to supply all the hinges it needs (30,000 hinges) at a cost of $49. The manager of the Door Division is considering the offer but wants to approach the Hinge Division first.
What would be the profit impact to Altoona Corporation as a whole if the Door Division purchased the 30,000 hinges it needs from the outside vendor for $49?
A) No change in profit to Altoona.
B) $150,000 increase in profits.
C) $150,000 decrease in profits.
D) $750,000 decrease in profits.
|
Projects committee for royal caribbean cruise line
: You're an operations executive chairing the Projects Committee for Royal Caribbean Cruise Line. You're committee has been tasked with conducting a post-audit.
|
|
Discuss the ways that compliance with the regulations
: Discuss the ways that compliance with the regulations is beneficial to the company, industry, and consumers
|
|
Determine the average rate of return on the investment
: BAM Co. is evaluating a project requiring a capital expenditure of $806,250. The project has an estimated life of 4 years and no salvage value.
|
|
What is the profit maximizing sales and price of tickets
: Assume MC = 0, and that stadium capacity is unconstrained. What is the profit maximizing sales and price of tickets?
|
|
What would be the profit impact to altoona corporation
: What would be the profit impact to Altoona Corporation as a whole if the Door Division purchased the 30,000 hinges it needs from the outside vendor for $49
|
|
Prepare the adjusting entries for the month of june
: Prepare the adjusting entries for the month of June. Use J3 as the page number for your journal. Prepare the adjusting entries for the month of June
|
|
Balances pertaining to stockholders
: At December 31, 2017, the ledger contained the following balances pertaining to stockholders' equity.
|
|
What is the theory behind the matching principle
: What is the theory behind the matching principle? In what method of accounting, accrual or cash, does the matching principle apply?
|
|
How are the us gdp and components affected
: How are the U.S. GDP and its components (C, I, G, Export, and Import) affected in 2002 and 2003, by how much?
|