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Division, which produces an HDTV under its own name. The Screen Division charges $194 per screen for all sales. The net operating income associated with
Division, which produces an HDTV under its own name. The Screen Division charges $194 per screen for all sales. The net operating income associated with the Quark Division's HDTV is computed as follows: Selling price per unit $ 584 Variable cost per unit: Cost of the screen $194 Variable cost of electronic parts 237 Total variable cost Contribution margin 153 Fixed costs per unit 80. Net operating income per unit $ 73 431 *Based on a capacity of 250,000 units per year. The Quark Division has an order from an overseas source for 5,000 HDTVs. The overseas source wants to pay only $415 per unit Required: 1. Assume the Quark Division has enough idle capacity to fill the 5,000-unit order. Is the division likely to accept the $415 price or to reject it? 2. Assume both the Screen Division and the Quark Division have Idle capacity. Under these conditions, what is the financial advantage (disadvantage) for the company as a whole (on a per unit basis) if the Quark Division rejects the $415 price? 3. Assume the Quark Division has idle capacity but that the Screen Division is operating at capacity and could sell all of its screens to outside manufacturers. Under these conditions, what is the financial advantage (disadvantage) for the company as a whole (on a per unit basis) if the Quark Division accepts the $415 unit price? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Assume the Quark Division has enough idle capacity to fill the 5,000-unit order. Is the division likely to accept the $415 price or to reject it? Raject
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