E. $ 2.30

17 Genesis Scents has two divisions: the Cologne Division and the Bottie Division. The Bottle Division produces containers that can be used by the Cologne Division. The Bottle Division's variable manufacturing cost is $2.30, shipping cost is $0.13, and the external sales price is $3:30. No shipping costs are incurred on sales to the Cologne Division, and the Cologne Division can purchase allar containers in the exdomol mare for $2.90 The Bottle Division has sufficient capacity to meet all external market demands In addition to meeting the demands of the Cologne Division, Using the general rule, the transfer price from the Bottle Division to the Cologne Division would be: Skloped Print Multiple Choice O $2.40 O $3.17 O $2.90 O $3.30 Brilliant, Inc. reported the following results from the sale of 23,000 units of IT-54: 32 Skloped Sales Variable manufacturing costs Fixed manufacturing costs Variable selling costs Fixed administrative costs $534,000 253,000 138,000 52,300 35,800 Print Extra Company has offered to purchase 3.200 IT-54s at $15 each, Brilliant has available capacity, and the president is in favor of accepting the order. She feels it would be profitable because no variable selling costs will be incurred. The plant manager is opposed because the full cost of production is $17. Which of the following correctly notes the change in income if the special order is accepted? Multiple Choice $6,400 decrease. O S6400 increase 32 Multiple Choice Slipped O $6,400 decrease Print $6,400 increase O $12,800 decrease $12,800 increase None of the answers is correct. 33 Canyon Trails is studying whether to outsource its Human Resources (HR) activities. Salaried professionals who earn $440,000 would be terminated: In contrast, administrative assistants who earn $143,000 would be transferred elsewhere in the organization, Miscellaneous departmental overhead (eg. supplies, copy charges, overnight delivery is expected to decrease by $39.000, and $25,000 of corporate overhead, previously allocated to Human Resources, would be picked up by other departments, Canyon Trails can secure needed HR services locally for $460,000, how much would the company benefit by outsourcing? Muhiple Choice $19,000 $53,000 $162,000 $196,000 Nothing as would be cheaper to keep the department open