The product divisions designed, engineered, assembled, and sold various home appliances.They manufactured very few component parts; rather, they assembled the appliances from parts
purchased either from the manufacturing divisions or from outside vendors. The manufacturing
divisions made approximately 75 percent of their sales to the product divisions. Parts made by the
manufacturing divisions were generally designed by the product divisions; the manufacturing divisions merely produced the parts to specifications provided to them. Although all the manufacturing divisions had engineering departments, these departments did only about 20 percent of the total company engineering.