Intermediate. X plc, a manufacturing company, has two divisions: Division A and Division B. Division A...
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Intermediate. X plc, a manufacturing company, has two divisions: Division A and Division B. Division A produces one type of product, ProdX, which it Transfers to Division B and also sells externally. Division B has been approached by another company which has offered to supply 2500 units of ProdX for £35 each. The following details for Division A arc available; Salen reveno Sales to Drvisicn Be40 per unt External ses O CA5 per unt Les Variable cost 22 per unit 400 000 270 000 362 000 100 000 Fied costs Proft If Division B decides to buy from the other company, the impact of the decision on the profits of Division A and X plc, assuming external sales of ProdX cannot be increased, will be Dvisions A Xpic A. E16 625 decroase 32 S00 decreane £45 000 decrease £45 000 decreane £12 500 docrease $12 500 decreane £12 500 incrase E32 500 incrense £32 500 decrease E45 C00 decrease Intermediate. X plc, a manufacturing company, has two divisions: Division A and Division B. Division A produces one type of product, ProdX, which it Transfers to Division B and also sells externally. Division B has been approached by another company which has offered to supply 2500 units of ProdX for £35 each. The following details for Division A arc available; Salen reveno Sales to Drvisicn Be40 per unt External ses O CA5 per unt Les Variable cost 22 per unit 400 000 270 000 362 000 100 000 Fied costs Proft If Division B decides to buy from the other company, the impact of the decision on the profits of Division A and X plc, assuming external sales of ProdX cannot be increased, will be Dvisions A Xpic A. E16 625 decroase 32 S00 decreane £45 000 decrease £45 000 decreane £12 500 docrease $12 500 decreane £12 500 incrase E32 500 incrense £32 500 decrease E45 C00 decrease
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Related Book For
Foundations of Financial Management
ISBN: 978-1259024979
10th Canadian edition
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen, Doug Short, Michael Perretta
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