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The correct final answers are provided below, please show your work on how to get the answers. Thanks! 39. decrease $50,000 40. increase $80,000 Use
The correct final answers are provided below, please show your work on how to get the answers. Thanks!
39. decrease $50,000
40. increase $80,000
Use the following information to answer questions 39 through 40. Seenlt has just purchased a small company that specializes in electronic tuners used as a component in TV sets. Seenlt is a decentralized company. It will treat the newly acquired company as an autonomous division with full profit responsibility The new division, called Tuner Division, has the following revenue and cost associated with each tuner. Selling price per unit on the outside market...................$25 Variable cost per unit. Fixed cost per unit (based on capacity of 80,000 units) Profit per unit...Sl Seenlt also has an Assembly Division that assembles TV sets. This division is currently purchasing 10,000 tuners per year from an overseas supplier at a cost of S20. The president of Seenlt would like Assembly Division to purchase from Tuner Division in order to "keep the profits within the corporate family." 39. Assume Tuner Division is able to sell all the tuners it can make to outside buyers. By what amount would corporate profit change if Tuner were forced to sell 10,000 tuners to Assembly Division at a price of S19? Use the word "increase" or "decrease" to indicate the direction of changeStep by Step Solution
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