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Weathermaster Window Company manufactures windows for the home-building industry. The
window frames are produced in the Frame Division. The frames are then transferred to the Glass
Division, where the glass and hardware are installed. The company
Weathermaster Window Company manufactures windows for the home-building industry. The
window frames are produced in the Frame Division. The frames are then transferred to the Glass
Division, where the glass and hardware are installed. The company
Solution
If the selling division is operating at maximum capacity and has only a limited number of goods
to sell, then any goods sold to another division mean giving up normal sales to an outside
customer. This situation entails opportunity costs

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  • 1. Weathermaster Window Company manufactures windows for the home-building industry. The window frames are produced in the Frame Division. The frames are then transferred to the Glass Division, where the glass and hardware are installed. The company Weathermaster Window Company manufactures windows for the home-building industry. The window frames are produced in the Frame Division. The frames are then transferred to the Glass Division, where the glass and hardware are installed. The company Solution If the selling division is operating at maximum capacity and has only a limited number of goods to sell, then any goods sold to another division mean giving up normal sales to an outside customer. This situation entails opportunity costs