Mergers and acquisitions are often driven by such strategic objectives as to

A. facilitating a company's shift from a low-cost leadership strategy to a focused low-cost strategy.
B. expanding a company's geographic coverage or extending its business into new product categories.
C. reducing the number of industry key success factors.
D. reducing the number of strategic groups in the industry.
E. lengthening a company's value chain and thereby putting it in a better position to deliver superior value to buyers.

T-comm makes a variety of products. it is organized in two divisions, north and south. the managers for each division are paid, in part, based on the financial performance of their divisions. the south division normally sells to outside customers but, on occasion, also sells to the north division. when it does, corporate policy states that the price must be cost plus 20 percent to ensure a "fair" return to the selling division. south received an order from north for 300 units. south's planned output for the year had been 1,200 units before north's order. south's capacity is 1,500 units per year. the costs for producing those 1,200 units follow