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Essay text:
Inc. |
|Display |?140000 |?105000 |
|Other Components |?72000 |?72000 |
|Conversion (Fixed) |?117700 |?117700 |
|Conversion (Variable) |?26300 |?26300 |
|GP for ISD |?-16,000 |?19,000 |
After putting all costs incurred in manufacturing of X73, if ISD select HighResolution as the supplier, the gross profit is negative, if display tech is selected, it will be positive. It’s obviously choosing Display Tech. as the supplier would fit the best interest of ISD.
c) The High Resolution Division?
It is obvious that High Resolution would be benefited if he is selected as the supplier of the display (?35000)...
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