The Cycle Division of Sarasota Company has the following unit data related to its most recent...
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The Cycle Division of Sarasota Company has the following unit data related to its most recent cycle, the Roadbuster. Selling price Variable cost of goods sold $2,376 Body frame $324 Other variable costs 972 1,296 Contribution margin $1,080 Presently, the Cycle Division buys its body frames from an outside supplier. However Sarasota has another division, Frame Body, that makes body frames for other cycle companies. The Cycle Division believes that FrameBody's product is suitable for its new Roadbuster cycle. Presently, FrameBody sells its frames for $378 per frame. The variable cost for Frame Body is $286. The Cycle Division is willing to pay $294 to purchase the frames from FrameBody.. (a) Assume that Frame Body has excess capacity and is able to meet all of the Cycle Division's needs. If the Cycle Division buys 1,080 frames from FrameBody, determine the following: (Enter negative amounts using either a negative sign preceding the number eg.-45 or parentheses e.g. (45).) (1) Effect on the income of the Cycle Division $ (2) Effect on the income of FrameBody (3) Effect on the income of Sarasota $ The Cycle Division of Sarasota Company has the following unit data related to its most recent cycle, the Roadbuster. Selling price Variable cost of goods sold $2,376 Body frame $324 Other variable costs 972 1,296 Contribution margin $1,080 Presently, the Cycle Division buys its body frames from an outside supplier. However Sarasota has another division, Frame Body, that makes body frames for other cycle companies. The Cycle Division believes that FrameBody's product is suitable for its new Roadbuster cycle. Presently, FrameBody sells its frames for $378 per frame. The variable cost for Frame Body is $286. The Cycle Division is willing to pay $294 to purchase the frames from FrameBody.. (a) Assume that Frame Body has excess capacity and is able to meet all of the Cycle Division's needs. If the Cycle Division buys 1,080 frames from FrameBody, determine the following: (Enter negative amounts using either a negative sign preceding the number eg.-45 or parentheses e.g. (45).) (1) Effect on the income of the Cycle Division $ (2) Effect on the income of FrameBody (3) Effect on the income of Sarasota $
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