Question: Diy A's unit cost data is below. Div B has been purchasing 1,000 units for $215.00 from another vendor and has offered Div A a
Diy A's unit cost data is below. Div B has been purchasing 1,000 units for $215.00 from another vendor and has offered Div A a price of $180.00 for 1,000 units. Div A's normal selling price is $220.00. Div A's capacity is 15.000 units and current sales to outside customers is 14,500 units. What is the earnings affect on the company if Diy B purchases 1,000 units from Div A at $180.00 rather than outside at $215.00? DM $60.00 DL 30.00 VOHD 15.00 FOHD 24.00 Variable selling 45.00 Fixed selling 9.00 ANSWER: INCREASE OF $30,000 Div A's unit cost data is below. Diy B has been purchasing 1,000 units of the same part for $215.00 from another vendor and has offered Div A a price of $160.00 for 1,000 units. Div. A's normal selling price is $210.00. Dix A's capacity is 15,000 units and current sales to outside customers is 14,500 units. Will Div A accept the offer from Diy B? DM $60.00 DL 30.00 VOHD 15.00 FOHD 24.00 Variable selling 45.00 Fixed selling 9.00 ANSWER: NO, BECAUSE DIVA'S INCOME WILL DECREASE BY $20.00 PER UNIT
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