Question: Gradebook ORION Dewenloadable eTextbook ment SCREENPRINTER VERSIONBACK Exercise 22-12 (Part Level Submission) The Cycle Division of Ayala Company has the following per unit data related


Gradebook ORION Dewenloadable eTextbook ment SCREENPRINTER VERSIONBACK Exercise 22-12 (Part Level Submission) The Cycle Division of Ayala Company has the following per unit data related to its most recent cycle called Roadbuster Seling price Variable cost of goods sold $2,210 Body frama $305 004 1,209 $1,001 Other variable costs Contribution margin Presently, the Cycle Division buys its body frames from an outside supplier. However Ayaia has another division, FrameBody, that makes body frames for other cycle companies. The Cydle Division believes that FrameBody's product is suitable for its new Roadbuster cycle. Presently, FrameBody sells its frames for $352 per frame. The mnable cost for FrameSody 1s $262. The Cycle Division is willing to pay $275 to purchase the frames from FrameBody Your answer is correct Assume thet FrameBody hes excess capaoity and is able to meet all of the Cycle Division's needs. Ir the Cycle Division buys 1,050 frames from FrameBody, determine the following: (Enter negative amounts using elther a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) (1) Effect on the income of the Cycle Division (2) Effuct on the income af Framebody (3) Eect on the income of Ayaia 13,65 d Rights Reserved. A Division of iohn Wicy So
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