Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. altoona corporation has two divisions, hinges and

Altoona Corporation has two divisions, Hinges and Doors, which are both organized as profit centers;...

90.2K

Verified Solution

Question

Accounting

Altoona Corporation has two divisions, Hinges and Doors, which are both organized as profit centers; the Hinge Division produces and sells hinges to the Door Division and to outside customers. The Hinge Division has total costs of $43, $26 of which are variable. The Hinge Division is operating significantly below capacity and sells the hinges for $58. The Door Division has received an offer from an outsider vendor to supply all the hinges it needs (32,000 hinges) at a cost of $53. The manager of the Door Division is considering the offer but wants to approach the Hinge Division first. What would be the profit impact to Altoona Corporation as a whole if the Door Division purchased the 32,000 hinges it needs from the outside vendor for $53?

No change in profit to Altoona.

$160,000 increase in profits.

$160,000 decrease in profits.

$864,000 decrease in profits.

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Accounting
1.2K views

Write a two-page paper that explains how corporations make investing decisions. In other words, corporations can...

Statistics
1.2K views

1) In MANCOVA, Independent variables, Dependent variables and covariate must each confirm to a specific level...

Biology
1.2K views

You’re provided a lab protocol to perform a very short digestion of eukaryotic chromatin with micrococcal...

Medical Sciences
1.2K views

Differentiate between two types of nephrons found in kidneys

Mechanical Engineering
1.2K views

(a)Air, which can be assumed to behave as an ideal gas, undergoes a process from 150kPa...

Basic Math
1.2K views

4 Many years ago I was fortunate enough to buy some savings bonds that appreciated...

Accounting
1.2K views

Simba (Pty) Ltd purchased debentures in Town (Pty) Ltd on 1 January...

Accounting
1.2K views

Brian is a single dad filing head of household. Brians California sourced income is $28,964...

Accounting
1.2K views

CUESTIOH 1 Sam Sthole is a resident of the Republic. He is 47...

Accounting
1.2K views

Sharon Inc. is headquartered in State X and owns 100 percent of Carol, Josey, and...

Accounting
1.2K views

The following information is available regarding the total manufacturing overhead of Olaf Company for a...

Accounting
1.2K views

Question 14: Marginal accounting focuses on analyzing the revenue, costs, and profit associated with incremental...