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Use the Following Information for the Next 2 Questions

Question 19

Multiple Choice

Use the following information for the next 2 questions.
The National Division of Roboto Company is buying 10,000 widgets from an outside supplier at $30 per unit. Roboto's Overseas Division, which is producing and selling at full capacity (12,000 units) , has the following sales and cost structure: Use the following information for the next 2 questions. The National Division of Roboto Company is buying 10,000 widgets from an outside supplier at $30 per unit. Roboto's Overseas Division, which is producing and selling at full capacity (12,000 units) , has the following sales and cost structure:   -If the Overseas Division meets the outside supplier's price and sells the 10,000 widgets to National, the effect on overall company profits will be A)  $ 75,000 higher B)  $150,000 lower C)  $300,000 higher D)  $225.000 lower
-If the Overseas Division meets the outside supplier's price and sells the 10,000 widgets to National, the effect on overall company profits will be


A) $ 75,000 higher
B) $150,000 lower
C) $300,000 higher
D) $225.000 lower

Correct Answer:

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