(a)
(1)
Compute the effect on the income of Division C, if the division buys 1,000 frames from Division FB, under excess capacity
(a)
(2)
Compute the effect on the income of Division FB, if the division sells 1,000 frames to Division C, under excess capacity
(a)
(3)
Compute the overall effect on the income of Company A, under excess capacity
(b)
(1)
Compute the effect on the income of Division C, if the division buys 1,000 frames from Division FB, under no excess capacity
(b)
(2)
Compute the effect on the income of Division FB, if the division sells 1,000 frames to Division C, under no excess capacity
(b)
(3)
Compute the overall effect on the income of Company A, under no excess capacity
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