Paige Inc. has a division that makes paint and another division that constructs subdivisions. The paint division incurs the following costs for one gallon of paint:
The Paint Division can make 1,000,000 gallons per year, and expects to produce 800,000 gallons next year. The Construction Division currently buys 200,000 gallons of paint from an outside supplier for $5.30 per gallon (the same price that the Paint Division receives).

Question

Paige Inc. has a division that makes paint and another division that constructs subdivisions. The paint division incurs the following costs for one gallon of paint:
  The Paint Division can make 1,000,000 gallons per year, and expects to produce 800,000 gallons next year. The Construction Division currently buys 200,000 gallons of paint from an outside supplier for $5.30 per gallon (the same price that the Paint Division receives).

Quizplus · Accepted Answer

The Answer of Paige Inc. has a division that makes paint and another division that constructs subdivisions. The paint division incurs the following costs for one gallon of paint:
  The Paint Division can make 1,000,000 gallons per year, and expects to produce 800,000 gallons next year. The Construction Division currently buys 200,000 gallons of paint from an outside supplier for $5.30 per gallon (the same price that the Paint Division receives).

Paige Inc Has a Division That Makes Paint and Another Division