Question
Andrewz, Inc. has a fabrication division which manufactures an antenna that is used by the electronics division (the fabrication division has other customers besides the
Andrewz, Inc. has a fabrication division which manufactures an antenna that is used by the electronics division (the fabrication division has other customers besides the electronics division). The antenna is sold by the fabrication division to external customers for $35 per unit. Variable and fixed costs per unit are $17 and $7, respectively. The President of Andrewz would like for the fabrication division to transfer 8,000 units to the electronics division at a price of $25 per unit.
(T or F) If the fabrication division is operating below capacity by 10,000 units, then the fabrication division manager will make the transfer as requested by the President.
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