asy Fit Ltd . manufactures heating, ventilation, and air conditioning ( HVAC ) equipment. The Manufacturing Division
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Question:
asy Fit Ltd manufactures heating, ventilation, and air conditioning HVAC equipment. The Manufacturing Division creates parts, and the Assembly Division builds and sells the equipment. The Manufacturing Division sells furnace parts packages to the Assembly Division. The market price for the Assembly Division to purchase a mini furnace is $ The fixed costs for the Manufacturing Division are assumed to be the same over the range of units. The fixed costs for the Assembly Division are assumed to be $ per unit at units.
Manufacturing Division costs per furnace:
Direct materials $
Direct labour $
Variable overhead $
Division fixed costs $
Assembly Division costs per completed furnace:
Direct materials $
Direct labour $
Variable overhead $
Division fixed costs $
If the Assembly Division sells furnaces at a price of $ per unit to customers, what is the companys operating income?
Related Book For
Statistics For Business & Economics
ISBN: 9781285846323
12th Edition
Authors: David Anderson, Dennis Sweeney, Thomas Williams, Jeffrey Camm, James Cochran
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