kaplan gb519 unit 5 assignment Exercise 10-19 and 10 - 23 latest 2016
Unit 5 Assignment
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Exercise 10-23
Division A’s cost accounting records show that the cost of its
product is $150 per unit—$118 in variable costs and $32 in fixed costs. The
market price of the product, $162, barely covers Division A’s cost of
production plus its selling and administrative costs. Division A has a maximum
capacity of 107,000 units; it is currently producing and selling 76,400 units.
Division B makes a product that uses Division A’s product and would like to
purchase 10,700 units from Division A for $158. With $45 additional variable
costs, Division B produces and sells the product for $256. Division A’s manager
is not happy with Division B’s offer and is refusing to sell.
Calculate the increase in corporate income in the following situations:
a. |
Division A sells 10,700 units to Division B for $158 each, and Division B produces and sells 10,700 units for $256. |
|
b. |
Division A does not sell to Division B. Division B purchases 10,700 units from an external supplier at $162 each and produces and sells 10,700 units for $256. |
Increase in |
|
a. |
$ |
b. |
$ |
Warning
Exercise 10-23
Division A’s cost accounting records show that
the cost of its product is $150 per unit—$118 in variable costs and $32 in
fixed costs. The market price of the product, $162, barely covers Division A’s
cost of production plus its selling and administrative costs. Division A has a
maximum capacity of 107,000 units; it is currently producing and selling 76,400
units. Division B makes a product that uses Division A’s product and would like
to purchase 10,700 units from Division A for $158. With $45 additional variable
costs, Division B produces and sells the product for $256. Division A’s manager
is not happy with Division B’s offer and is refusing to sell.
Calculate the increase in corporate income in the following situations:
a. |
Division A sells 10,700 units to Division B for $158 each, and Division B produces and sells 10,700 units for $256. |
|
b. |
Division A does not sell to Division B. Division B purchases 10,700 units from an external supplier at $162 each and produces and sells 10,700 units for $256. |
Increase in |
|
a. |
$ |
b. |
$ |
Exercise 10-23
Division A’s cost accounting records show that the cost of its
product is $150 per unit—$118 in variable costs and $32 in fixed costs. The
market price of the product, $162, barely covers Division A’s cost of
production plus its selling and administrative costs. Division A has a maximum
capacity of 107,000 units; it is currently producing and selling 76,400 units.
Division B makes a product that uses Division A’s product and would like to
purchase 10,700 units from Division A for $158. With $45 additional variable
costs, Division B produces and sells the product for $256. Division A’s manager
is not happy with Division B’s offer and is refusing to sell.
Calculate the increase in corporate income in the following situations:
a. |
Division A sells 10,700 units to Division B for $158 each, and Division B produces and sells 10,700 units for $256. |
|
b. |
Division A does not sell to Division B. Division B purchases 10,700 units from an external supplier at $162 each and produces and sells 10,700 units for $256. |
Increase in |
|
a. |
$ |
b. |
$ |
CONTINUE
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Rating:
5/
Solution: kaplan gb519 unit 5 assignment Exercise 10-19 and 10 - 23 latest 2016