Afamily's ability to buy goods and services depends largely on its permanent income, which is its normal, or average, income. permanent income, which is the lowest annual income the family has received over a 10-year period. transitory income, which is the measure of income used by the government to analyze the distribution of income and the poverty rate. transitory income, which is its money income plus any in-kind transfers it receives.

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