Answer:
c. Division 1 should continue to do business with Division 2 because Division 1's variable cost per part is only $18.
Explanation:
Since the variable cost per part is only $18 and Division 1 sells to Division 2 at $25, it is in the company's overall interest that business should continue between the two divisions.
The cost of getting the part from outside is $26. This will incur more cost to the company and create excess capacity for Division 1.
Fixed costs are not relevant in making a decision of this nature. The costs would be incurred irrespective of the decision made. They are therefore irrelevant. The relevant cost is the variable cost of $18 per unit. It should be the focus of the decision, including the possibility of excess capacity for Division 1.
Answer:
A) Infrastructure costs
Explanation:
Small companies are usually not able to compete with large firms due to the Infrastructure weakness.
Answer: Option (D)
Explanation:
Under marketing, CVP also known as customer value proposition tends to consist of benefits(sum total) which an individual i.e. a vendor tends to promise a consumer will receive in exchange for a consumer's associated payment.
A CVP is referred to or known as a marketing statement that tends to describes why an individual should buy a commodity or service. It is mainly aimed at potential consumers instead of targeting other groups.