Question
Cullumber International Corporation has two divisions, beta and gamma. Beta produces an electronic component that sells for $77 per unit, with the following costs based
Cullumber International Corporation has two divisions, beta and gamma. Beta produces an electronic component that sells for $77 per unit, with the following costs based on its capacity of 216,700 units: Direct materials Direct labour Variable overhead Fixed overhead (a) $28 17 Beta is operating at 73% of normal capacity and gamma is purchasing 15,500 units of the same component from an outside supplier for $71 per unit. Benefit $ (b) 3 15 Your answer is correct. Calculate the benefit, if any, to beta in selling to gamma 15,500 units at the outside supplier's price. eTextbook and Media Lowest price $ 23 per unit Calculate the lowest price beta would be willing to accept. Attempts: 1 of 3 used
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