A, the rent. If confused between A and B, remember that electricity is a cost that can fluctuate over the amount of business, as well as C and D.
Answer:
Division N's purchase costs will decrease by $90,000 per year
Explanation:
Division N's purchase cost form outside vendor = total units purchased per year x unit price = 30,000 units x $15 = $450,000
if Division N obtains the product form division M with a transfer price of $12 per unit, their costs will decrease by = total units x (vendor price - transfer price) = 30,000 units x ($15 - $12) = $90,000 per year
Answer:
B. primary activity
Explanation:
Based on the information provided within the question it can be said that in this scenario North Star is addressing a primary activity in the value chain analysis. This is because the five primary activities are inbound logistics, operations, outbound logistics, marketing and sales, and service. So in this scenario, North Star implementing new equipment into its production it is dealing with the operations factor of the primary activities.
Answer:
A) Joint Venture
Explanation:
Based on the scenario being described within the question it can be said that in this context, Cream Bite Inc. is a Joint Venture. This is a business term that refers to an arrangement between two parties in which both combine their resources in order to meet an agreed upon goal in a more efficient manner and in a much smaller time-frame than if they were to do it separately.
