The boss of the consulting firm offers to pay them jointly $10,000 to be split as they choose. However, they must agree the split before taking the job. As an alternative they can go home to Nashville for the summer where Miley will earn $2,000 working for the Disney corporation and Cyrus will earn $4,000 holding up an advertising board outside the local Denny's restaurant (a) How do Miley and Cyrus choose to split the $10,000(b) Suppose now that if they return to Nashville Miley can either work for Disney or become the local arsonist and burn down the Denny's putting Cyrus out of a job. She will be arrested and fined S1,000 for this action. Should she choose this seemingly crazy option? How might this effect their split of the $10,000 should they spend the summer in Eugene.

Make or buy eastside company incurs a total cost of $120,000 in producing 10,000 units of a component needed in the assembly of its major product. the component can be purchased from an outside supplier for $11 per unit. a related cost study indicates that the total cost of the component includes fixed costs equal to 50% of the variable costs involved. a. should eastside buy the component if it cannot otherwise use the released capacity? present your answer in the form of differential analysis. use negative sign represent a net disadvantage answer; otherwise do not use negative signs with your answers. cost from outside supplier $answer variable costs avoided by purchasing answer net advantage (disadvantage) to purchase alternative $answer b. what would be your answer to requirement (a) if the released capacity could be used in a project that would generate $50,000 of contribution margin? use negative sign represent a net disadvantage answer; otherwise do not use negative signs with your answers.