Dome Enterprises has two divisions Joyce Sporting Goods and DeBartolo Publications Along with items found in a typical sporting goods store, Joyce produces coaching manuals for a variety of sports Currently Joyce uses an outside publisher to print and bind all of the manuals at an average price of $17 per manual Joyce has asked DeBartolo if they could print and bind the manuals for Joyce DeBartolo has the capacity to print and bind 30,000 manuals per year Joyce would need 5,000 manuals printed and bound per year Printing and binding costs for DeBartolo are provided below Per Unit Paper $ 2 00 Other Variable Costs $ 3 00 Variable Overhead $ 5 00 Fixed Costs unit $ 5 00 Total $15 00 If DeBartolo prints the manuals for Joyce there would be a $2 reduction in their normal variable costs due to a reduction in variable selling costs DeBartolo normally charges $20 per unit for similar products to outside customers Assume that DeBartolo has zero excess capacity What is the maximum price Joyce would be willing to pay per unit and what is the minimum price DeBartolo would be willing to sell per unit to fulfill all of the needs of Joyce A Maximum purchase price $17 Minimum Selling Price $8 B Maximum purchase price $17 Minimum Selling Price $20 C Maximum purchase price $17 Minimum Selling Price $16 D Maximum purchase price $17 Minimum Selling Price $18 E None of the above Reset Selection Question 10 of 474 Points Assume that DeBartolo is currently selling 20,000 units to outside customers What is the maximum price Joyce would be willing to pay per unit and what is the minimum price DeBartolo would be willing to sell per unit to fulfill all of the needs of Joyce A Maximum purchase price $17 Minimum Selling Price $8 B Maximum purchase price $17 Minimum Selling Price $10 C Maximum purchase price $17 Minimum Selling Price $18 D Maximum purchase price $17 Minimum Selling Price $20 E None of the above Reset Selection Question 11 of 474 Points Assume that DeBartolo is currently selling 28,000 units to outside customers What is the maximum price Joyce would be willing to pay per unit and what is the minimum price DeBartolo would be willing to sell per unit to fulfill all of the needs of Joyce A Maximum purchase price $17 Minimum Selling Price $11 B Maximum purchase price $17 Minimum Selling Price $12 80 C Maximum purchase price $17 Minimum Selling Price $14 D Maximum purchase price $17 Minimum Selling Price $16 E None of the above

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Dome Enterprises has two divisions: Joyce Sporting Goods and DeBartolo Publications. Along with items found in a typical sporting goods store, Joyce produces coaching manuals

Dome Enterprises has two divisions: Joyce Sporting Goods and DeBartolo Publications. Along with items found in a typical sporting goods store, Joyce produces coaching manuals for a variety of sports. Currently Joyce uses an outside publisher to print and bind all of the manuals at an average price of $17 per manual. Joyce has asked DeBartolo if they could print and bind the manuals for Joyce. DeBartolo has the capacity to print and bind 30,000 manuals per year. Joyce would need 5,000 manuals printed and bound per year. Printing and binding costs for DeBartolo are provided below:

	Per Unit
Paper	$ 2.00
Other Variable Costs	$ 3.00
Variable Overhead	$ 5.00
Fixed Costs/unit	$ 5.00
Total	$15.00

If DeBartolo prints the manuals for Joyce there would be a $2 reduction in their normal variable costs due to a reduction in variable selling costs. DeBartolo normally charges $20 per unit for similar products to outside customers.

Assume that DeBartolo has zero excess capacity. What is the maximum price Joyce would be willing to pay per unit and what is the minimum price DeBartolo would be willing to sell per unit to fulfill all of the needs of Joyce?

A.
Maximum purchase price: $17 Minimum Selling Price: $8
B.
Maximum purchase price: $17 Minimum Selling Price: $20
C.
Maximum purchase price: $17 Minimum Selling Price: $16
D.
Maximum purchase price: $17 Minimum Selling Price: $18
E. None of the above.

Reset Selection

Question 10 of 474 Points

Assume that DeBartolo is currently selling 20,000 units to outside customers. What is the maximum price Joyce would be willing to pay per unit and what is the minimum price DeBartolo would be willing to sell per unit to fulfill all of the needs of Joyce?

A. Maximum purchase price: $17 Minimum Selling Price: $8
B. Maximum purchase price: $17 Minimum Selling Price: $10
C. Maximum purchase price: $17 Minimum Selling Price: $18
D. Maximum purchase price: $17 Minimum Selling Price: $20
E. None of the above.

Reset Selection

Question 11 of 474 Points

Assume that DeBartolo is currently selling 28,000 units to outside customers. What is the maximum price Joyce would be willing to pay per unit and what is the minimum price DeBartolo would be willing to sell per unit to fulfill all of the needs of Joyce?

A. Maximum purchase price: $17 Minimum Selling Price: $11
B. Maximum purchase price: $17 Minimum Selling Price: $12.80
C. Maximum purchase price: $17 Minimum Selling Price: $14
D. Maximum purchase price: $17 Minimum Selling Price: $16
E. None of the above.