Bedtime Bedding Company manufactures pillows. The Cover Division makes covers and the Assembly Division makes the finished products. The covers can be sold separately for $5.00. The pillows sell for $6.00. The information related to manufacturing for the most recent year is as follows: Cover Division Manufacturing Costs $6,000,000 Sales of covers by Cover Division $4,200,000 Market value of covers transferred to Assembly $6,400,000 sales of pillows by Assembly Division $7,680,000 Additional manufacturing costs of Assembly Division $1,800,000 Required: a. Compute the operating income for each division and the company as a whole. Use market value as the transfer price. b. Are all managers happy with this concept

Garrett is an executive vice president at samm hardware. he researches a proposal by a larger company, maximum hardware, to combine the two companies. by analyzing past performance, conducting focus groups, and interviewing maximum employees, garrett concludes that maximum has poor profit margins, sells shoddy merchandise, and treats customers poorly. what actions should garrett and samm hardware take? a. turn down the acquisition offer and prepare to resist a hostile takeover. b. attempt a friendly merger and use managerial hubris to improve results at maximum. c. welcome the acquisition and use knowledge transfer to impart sam hardware's management practices. d. do nothing; the two companies cannot combine without samm hardware's explicit consent.