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The Jason - Lowell Corporation, manulacturer of tractors and other heavy farm equipment, is organized along decentral zed product lines, with each manutecturing outsiders and
The Jason - Lowell Corporation, manulacturer of tractors and other heavy farm equipment, is organized along decentral zed product lines, with each manutecturing outsiders and to other divisions of Jason-towell. (Click to view the information on the divisions) Read the cequitements. Requirement 1. Assume that there are no alternative uses for internal faciltes of division A. Determine whether the company as a wholo will benafit if divition C purchases the component from external suppliers for $125 per unit. What should the transter price for the component be set at so that division managers acting in theif own divisions' best interests take sctions that are in the best interest of the company as a whole? Begin by completing the table below to calculate the net cont (benefa) to the company as a whole. (Enter a nat benefit uaing parentheses or a munus tign) The company as a whole benefit if division C purchases the component from extemal suppliers for $125 per unit. What thoitd the trenefer price for the componart he set at so mat division managers acting in their own divilons' best intereats tuke actions ithat are in ther bent interest of the company is a whole? The transter price should be set Pesulrement 2: Aseume that by not producing the 1,000 units for division C, division As equipment and olther facilties would be used for other production operationa that The Jason - Lowell Corporation, manulacturer of tractors and other heavy farm equipment, is organichd along decentralized product ines, with each manufocturing outsiors and to other divisions of Jason-Lowel. (1) (Click to view the information on the divisions.) Read the ceavirnents : Begin by complefing the table beiow to calculate the nat cost (benefa) to the company as a whole. (Enter a nat berefit iaing barenitheses or a inhis sign) Division C purchase the component from extemeisupgliens for $125 per unt. in the bast interest of the company as a whole? the heat incersit of the compecy as a whole? rocounts ateie? 111
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