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The Post Division of the Chester Company produces basic posts which can be sold to outside customers or to the Lamp Division of the Chester

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The Post Division of the Chester Company produces basic posts which can be sold to outside customers or to the Lamp Division of the Chester Company. Last year the Lamp Division bought all of its 25,000 posts from the Post Division. The following data are available for last year's activities of the Post Division Capacity in units Selling price per post to outside customers . Variable costs per pos Fixed costs, total 300,000 posts $1.75 $0.90 $150,000 Suppose the transfers of posts to the Lamp Division cut into sales of the Post Division to outside customers by 5,000 units. Further suppose that an outside supplier is willing to provide the Lamp Division with basic posts at 45 each. If the Lamp Division bad chosen to buy all of its posts from the outside supplier instead of the Post Division, the change in net operating incoime for the company as a whole would have been: 1,000 decrease B $10,250 increase C $1,250 decrease D $13,750 decrease in proht 2(1.41-1.45)256P 12 Zadra Company has two divisions, O and E. During the year just ended, Division O had a segment margin of 000 and variable expenses equal to 70% of sales. Traceable fixed expenses for Division B were S 19,000. Zora contribution nagu LG 9 of40%, common fixed expenses of S10,000, a net operating Company as a whole had a , and sales of $200,000. Given this data, the sales for Division E for last year were: me of $15,000, AS50,000 S150,000 C $87,500 D $116,667 E None of the above roteul Con Divisien Division E PrtScn Home F6 F7 F3 FS 5

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