With the advent of NAFTA, Cranford Manufacturing has a U.S. division and a Mexico division. Each division builds specialty components that are used by both divisions. For each dollar in sales by the U.S. division, Mexico furnishes $0.20 in components, and for each dollar in sales of the Mexico division, the United States furnishes $0.05 in components. Each division uses $0.10 worth of its components in its own division. Find the value of the components each division must produce to support external sales of $200 million by the U.S. division and $180 million by the Mexico division. Give your answer in millions of dollars. Report only the number, not the units.

With the advent of NAFTA, Cranford Manufacturing has a U.S. division and a Mexico division. Each division builds specialty components that are used by both divisions. For each dollar in sales by the U.S. division, Mexico furnishes $0.20 in components, and for each dollar in sales of the Mexico division, the United States furnishes $0.05 in components. Each division uses $0.10 worth of its components in its own division. Find the value of the components each division must produce to support external sales of $200 million by the U.S. division and $180 million by the Mexico division. Give your answer in millions of dollars. Report only the number, not the units.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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