Item2 5 points Time Remaining 3 hours 27 minutes 44 seconds03:27:44 eBookItem 2 Time Remaining 3 hours 27 minutes 44 seconds03:27:44 (Appendix 11A) Division P
Item2\ 5\ points\ Time Remaining 3 hours 27 minutes 44 seconds03:27:44\ eBookItem 2\ Time Remaining 3 hours 27 minutes 44 seconds03:27:44\ (Appendix 11A) Division P of Turbo Corporation has the capacity for making 75,000 wheel sets per year and regularly sells 60,000 each year on the outside market. The regular sales price is $100 per wheel set, and the variable production cost per unit is $65. Division Q of Turbo Corporation currently buys 30,000 wheel sets (of the kind made by Division P) yearly from an outside supplier at a price of $90 per wheel set. Division Q would like to buy the 30,000 wheel sets it needs annually from Division P at $87 per wheel set. What would be the change in annual operating income for the company as a whole, compared to what it is currently?\ Multiple Choice\ $135,000\ $225,000.\ $600,000\ $750,000
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Authors: Deborah Reuben, Certified Lease & Finance Professionals, Equipment Finance Industry Experts
6th Edition
171743388X, 978-1717433886
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