Arian International Corporation has two divisions, Division A and Division B. Division A produces a motor...
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Arian International Corporation has two divisions, Division A and Division B. Division A produces a motor that sells for $91 per unit, with the following costs based on its capacity of 182,000 units: Direct materials $31 Direct labour 27 Variable overhead Fixed overhead 8 Division A is operating at 70% of normal capacity and Division B is purchasing 24,000 units of the same component from an outside supplier for $86 per unit. (a) Z Your answer has been saved and sent for grading. See Gradebook for score details. Calcuiate the benefit, if any, to Division A in selling to Division B the 24,000 units at the outside supplier's price. Benefit 504000 LINK TO TEXT Attempts: 1 of 1 used (b) Calculate the lowest price Division A would be willing to accept. Lowest price LINK TO TEXT Arian International Corporation has two divisions, Division A and Division B. Division A produces a motor that sells for $91 per unit, with the following costs based on its capacity of 182,000 units: Direct materials $31 Direct labour 27 Variable overhead Fixed overhead 8 Division A is operating at 70% of normal capacity and Division B is purchasing 24,000 units of the same component from an outside supplier for $86 per unit. (a) Z Your answer has been saved and sent for grading. See Gradebook for score details. Calcuiate the benefit, if any, to Division A in selling to Division B the 24,000 units at the outside supplier's price. Benefit 504000 LINK TO TEXT Attempts: 1 of 1 used (b) Calculate the lowest price Division A would be willing to accept. Lowest price LINK TO TEXT
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Revenue 2064000 2400086 Less Incremental Costs Direct Material ... View the full answer
Related Book For
Foundations of Financial Management
ISBN: 978-1259277160
16th edition
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen
Posted Date:
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