Truball Incorporated which manufactures sports equipment, consists of several operating divisions. Division A has decided to go outside the company to buy materials because division B plans to increase its selling price for the same materials to $200. Information for division A and division B follows: Outside price for materials $ 140 Division A's annual purchases 9,000 units Division B's variable costs per unit $ 130 Division B's fixed costs, per year $ 1,230,000 Division B's capacity utilization 100% Required: 1. Assume that division cannot sell its materials to outside buyers. Calculate the net cost or benefit to the company as a whole if Division A purchases the materials outside the company. 2-0. Assume that division B can save $170,000 in fixed costs if it does not manufacture the material for Division A. Calculate the net cost or benefit to the company as a whole for A to purchase outside the company 2-b. From the standpoint of the effect of the transaction on the company as a whole, should Division A purchase from the outside market? 3-0. Assume the situation in Requirement 1. If the outside market value for the materials drops $19, calculate the net cost or benefit to the company as a whole for A to purchase outside the company. 3.b. From the standpoint of the effect of the transaction on the company as a whole, should Division A purchase from the outside market? Complete this question by entering your answers in the tabs below. Reg 1 Req ZA Reg 2 Req Reg 3B Assume that division cannot sell its materials to outside buyers. Calculate the net cost or benefit to the company as a whole if Division A purchases the materials outside the company. (Enter all the amounts as positive value.) PA 1. Assume that division cannot sell its materials to outside buyers. Calculate the net cost or benefit to the company as a whole Division A purchases the materials outside the company 2-a. Assume that division B can save $170,000 in fixed costs if it does not manufacture the material for Division A. Calculate the net cost or benefit to the company as a whole for A to purchase outside the company 2.b. From the standpoint of the effect of the transaction on the company as a whole, should Division A purchase from the outside market? 3-a. Assume the situation in Requirement 1. If the outside market value for the materials drops $19, calculate the net cost or benefit to the company as a whole for A to purchase outside the company 3-b. From the standpoint of the effect of the transaction on the company as a whole, should Division A purchase from the outside market? Complete this question by entering your answers in the tabs below. Reg 1 Reg 2A Reg 20 Reg 3A Reg 38 Assume that division B can save $170,000 in fixed costs if it does not manufacture the material for Division A. Calculate the net cost or benefit to the company as a whole for A to purchase outside the company. (Enter all the amounts as positive value.) Req 28 ) utside the company. 2-b. From the standpoint of the effect of the transaction on the company as a whole, should Division A purchase from the outside market? 3-a. Assume the situation in Requirement 1. If the outside market value for the materials drops $19, calculate the net cost or benefit to the company as a whole for A to purchase outside the company. 3-b. From the standpoint of the effect of the transaction on the company as a whole, should Division A purchase from the outside market? Complete this question by entering your answers in the tabs below. Req 1 Req 2A Req 25 Reg 3A Reg 38 From the standpoint of the effect of the transaction on the company as a whole, should Division A purchase from the outside market? Yes ONO uivision B can save $170,000 in fixed costs if it does not manufacture the material for Division A. Calculate the net cost or benefit to the company as a whole for A to purchase outside the company. 2-b. From the standpoint of the effect of the transaction on the company as a whole, should Division A purchase from the outside market? 3-a. Assume the situation in Requirement 1. If the outside market value for the materials drops $19, calculate the net cost or benefit to the company as a whole for A to purchase outside the company. 3-b. From the standpoint of the effect of the transaction on the company as a whole, should Division A purchase from the outside market? Complete this question by entering your answers in the tabs below. Reg 1 Reg 2A Reg 28 Troasa Reg 38 Assume the situation in Requirement 1. If the outside market value for the materials drops $19, calculate the net cost or benefit to the company as a whole for A to purchase outside the company. (Enter all the amounts as positive value) Ull to the company as a whole if lases the matenals outside the company 2-3. Assume that division B can save $170,000 in fixed costs if it does not manufacture the material for Division A. Calculate the net cost or benefit to the company as a whole for A to purchase outside the company 2.b. From the standpoint of the effect of the transaction on the company as a whole, should Division A purchase from the outside market? 3-a. Assume the situation in Requirement 1. If the outside market value for the materials drops $19, calculate the net cost or benefit to the company as a whole for A to purchase outside the company. 3-b. From the standpoint of the effect of the transaction on the company as a whole, should Division A purchase from the outside market? Complete this question by entering your answers in the tabs below. Reg 1 Reg 2A Reg 28 Req 3A Reg 38 From the standpoint of the effect of the transaction on the company as a whole, should Division A purchase from the outside market? Yes ONO
