Elsinore Electronics is a decentralized organization that evaluates divisional management based on measures of divisional contribution margin. Home Audio (Home) Division and Mobile Electronics (Mobile) Division both sell electronic equipment, primarily for video and audio entertainment. Home focuses on home and personal equipment; Mobile focuses on components for automobile and other, nonresidential equipment. Home produces an audio player that it can sell to the outside market for $72 per unit. The outside market can absorb up to 87,500 units per year. These units require 3 direct labor-hours each. If Home modifies the units with an additional hour of labor time, it can sell them to Mobile for $81 per unit. Mobile will accept up to 75,000 of these units per year. If Mobile does not obtain 75,000 units from Home, it purchases them for $84 each from the outside. Mobile incurs $36 of additional labor and other out-of-pocket costs to convert the player into one that fits in the dashboard and integrates with the automobile's audio system. The units can be sold to the outside market for $204 each. Home estimates that its total costs are $990,000 for fixed costs, $14.40 per direct labor-hour, and $7.20 per audio player for materials and other variable costs besides direct labor. Its capacity is limited to 375,000 direct labor-hours per year. Required: Determine the following: a. Total contribution margin to Home if it sells 87,500 units outside. b. Total contribution margin to Home if it sells 75,000 units to Mobile. (c) & (d). The costs to be considered in determining the optimal company policy for sales by Home. The annual contributions and costs for Home and Mobile under the optimal policy. Complete this question by entering your answers in the tabs below. Req A Req B Req C and D Determine the total contribution margin to Home if it sells 87,500 units outside. Total contribution margin Req A Req B > Elsinore Electronics is a decentralized organization that evaluates divisional management based on measures of divisional contribution margin. Home Audio (Home) Division and Mobile Electronics (Mobile) Division both sell electronic equipment, primarily for video and audio entertainment. Home focuses on home and personal equipment; Mobile focuses on components for automobile and other, nonresidential equipment. Home produces an audio player that it can sell to the outside market for $72 per unit. The outside market can absorb up to 87,500 units per year. These units require 3 direct labor-hours each. If Home modifies the units with an additional hour of labor time, it can sell them to Mobile for $81 per unit. Mobile will accept up to 75,000 of these units per year. If Mobile does not obtain 75,000 units from Home, it purchases them for $84 each from the outside. Mobile incurs $36 of additional labor and other out-of-pocket costs to convert the player into one that fits in the dashboard and integrates with the automobile's audio system. The units can be sold to the outside market for $204 each. Home estimates that its total costs are $990,000 for fixed costs, $14.40 per direct labor-hour, and $7.20 per audio player for materials and other variable costs besides direct labor. Its capacity is limited to 375,000 direct labor-hours per year. Required: Determine the following: a. Total contribution margin to Home if it sells 87,500 units outside. b. Total contribution margin to Home if it sells 75,000 units to Mobile. (c) & (d). The costs to be considered in determining the optimal company policy for sales by Home. The annual contributions and costs for Home and Mobile under the optimal policy. Complete this question by entering your answers in the tabs below. Req A Req B Req C and D Determine the total contribution margin to Home if it sells 75,000 units to Mobile. Total contribution margin Req A Req C and D > Complete this question by entering your answers in the tabs below. Req A Req B Req C and D Determine the following: The costs to be considered in determining the optimal company policy for sales by Home. The annual contributions and costs for Home and Mobile under the optimal policy. Sales by Home to outside Sales by Home to Mobile Sales by Mobile to outside Total sales Cost of materials, etc. in Home Cost of labor in Home Cost of units transferred to Mobile Cost of units purchased from outside by Mobile Conversion cost in Mobile Contribution Home Mobile < Req B Req C and D Company