Division A makes a part with the following characteristics:

Production capacity in units	31,100	units
Selling price to outside customers	$ 22
Variable cost per unit	$ 15
Total fixed costs	$ 102,300

Division B, another division of the same company, would like to purchase 13,700 units of the part each period from Division A. Division B is now purchasing these parts from an outside supplier at a price of $19 each.

Suppose that Division A is operating at capacity and can sell all of its output to outside customers at its usual selling price. If Division A agrees to sell the parts to Division B at $19 per unit, the company as a whole will be:

rev: 10_24_2020_QC_CS-237557

Multiple Choice

• There will be no change in the status of the company as a whole.

• worse off by $41,100 each period.

• better off by $41,100 each period.

• worse off by $82,200 each period.

Bruce Corporation makes four products in a single facility. These products have the following unit product costs: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Unit product cost A $ 16.70 18.70 5.50 28.60 69.50 Products B C $ 20.60 $ 13.60 22.10 16.50 6.70 9.20 15.50 15.60 64.90 54.90 D $ 16.30 10.50 6.20 17.60 50.60 Additional data concerning these products are listed below. Grinding minutes per unit Selling price per unit Variable selling cost per unit Monthly demand in units 2.00 $ 84.20 $ 2.45 4,100 Products B 1.05 0.60 $ 76.60 $ 73.40 $ 3.15 $ 3.90 3,100 3, 100 D 0.90 $ 68.10 $ 4.60 5, 100 The grinding machines are potentially the constraint in the production facility. A total of 10,500 minutes are available per month on these machines. Direct labor is a variable cost in this company. Which product makes the MOST profitable use of the grinding machines? (Round your intermediate calculations to 2 decimal places.) Which product makes the MOST profitable use of the grinding machines? (Round your intermediate calculations to 2 decimal places.) Multiple Choice Product B O Product C Product A O O Product D