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- /20 The Cycle Division of Flounder Company has the following unit data related to its most recent cycle, the Roadbuster. Selling price Variable cost
- /20 The Cycle Division of Flounder Company has the following unit data related to its most recent cycle, the Roadbuster. Selling price Variable cost of goods sold $1,980 Body frame $270 810 1,080 Other variable costs Contribution margin $900 Presently, the Cycle Division buys its body frames from an outside supplier. However Flounder has another division, FrameBody, 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 $315 per frame. The variable cost for FrameBody is $241. The Cycle Division is willing to pay $249 to purchase the frames from FrameBody. (a) Assume that FrameBody has excess capacity and is able to meet all of the Cycle Division's needs. If the Cycle Division buys 900 frames from FrameBody, determine the following: (Enter negative amounts using either a negative sign preceding the number es. -45 or parentheses e.g. (451) $ (1) Effect on the income of the Cycle Division $ (2) Effect on the income of FrameBody VA (3) Effect on the income of Flounder
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