Question

As the manager of the electrical division, would you supply the x52 fitting to the brake division for $5 each as requested? Why or why not?

Answer 1

To determine if supplying the x52 fitting to the brake division for $5 each is viable, a cost analysis should be conducted. Consider the cost of production and potential revenue. Also, assess any potential risks or conflicts of interest.

Step-by-step explanation:

As the manager of the electrical division, it is important to consider the cost and profitability of supplying the x52 fitting to the brake division for $5 each. To determine whether this is a viable option, I would recommend a cost analysis.

1. Calculate the cost of producing one x52 fitting, including materials, labor, and overhead expenses.
2. Analyze the potential revenue from supplying the brake division with x52 fittings.
3. Compare the cost of production to the potential revenue. If the revenue exceeds the cost, it may be profitable to supply the x52 fittings.

Additionally, it is important to consider any potential risks or conflicts of interest between the electrical and brake divisions.