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Enter your search term D Question 24 2 pts Frocks and Gowns, Inc., has two divisions. Day Wear and Night Wear. The Day Wear Division
Enter your search term D Question 24 2 pts Frocks and Gowns, Inc., has two divisions. Day Wear and Night Wear. The Day Wear Division has an investment base of $750,000 and produces (and sells) 100.000 units of Collars at a market price of $10.00 per unit. Variable costs total $3.50 per unit, and fixed charges are $4.00 per unit (based on a capacity of 120.000 units). The Night Wear Division wants to purchase 25.000 units of Collars from The Day Wear Division. However, the Night Wear Division is only willing to pay $6.75 per unit. What is the contribution margin for the Day Wear Division without the transfer to the Night Wear Division? Question 25 4 pts Use the information from 024 to answer the following: What is the change in the contribution margin for the Day Wear Division if it transfers 25.000 units to the Night Wear Division at $6.75 per unit? If the contribution margin decreases, enter your answer as a negative number
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