Question
Mountain Industries operates a Manufacturing Division and an Assembly Division. Both divisions are evaluated as profit centers. Assembly buys components from Manufacturing and assembles them
Mountain Industries operates a Manufacturing Division and an Assembly Division. Both divisions are evaluated as profit centers. Assembly buys components from Manufacturing and assembles them for sale. Manufacturing sells many components to third parties in addition to Assembly. Selected data from the two operations follow:
| Manufacturing | Assembly | |||||
| Capacity (units) | 201,000 | 101,000 | ||||
| Sales price * | $ | 80 | $ | 305 | ||
| Variable costs |
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Global Corporate Finance A Focused Approach
Authors: Kenneth Kim, Suk Kim
3rd Edition
9811207119, 9789811207112
