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Posted: June 15th, 2022

Tiffany Company has two divisions, Gold and Silver. Gold produces

Tiffany Company has two divisions, Gold and Silver. Gold produces a unit that Silver may use in itsproduction. Silver at the moment is buying 50,000 items from an outdoor provider for $25. Gold isoperating at lower than full capability and has variable prices of $13.50 per unit. The complete price tomanufacture the unit is$20. Gold at the moment sells 450,000 items at a promoting worth of $27. If an inside switch is made, variableshipping and administrative prices of $1 per unit could possibly be prevented. If the inner switch is made, whatwould be the influence on Tiffany Company’s general income?A.$625,000 increaseB.$1,125,000 increaseC.$225,000 decreaseD.No change in income

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