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Exercise 21-12 a-b The Cycle Division of Sheridan Company has the following per unit data related to its most recent cycle called Roadbuster. Selling price

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Exercise 21-12 a-b The Cycle Division of Sheridan Company has the following per unit data related to its most recent cycle called Roadbuster. Selling price $2,220 Variable cost of goods sold Body frame $300 Other variable costs 906 1,206 Contribution margin $1,014 Presently, the Cycle Division buys its body frames from an outside supplier. However Sheridan has another division, Bonita, that makes body frames for other cycle companies. The Cycle Division believes that Bonita's product is suitable for its new Roadbuster cycle. Presently, Bonita sells its frames for $356 per frame. The variable cost for Bonita is $255. The Cycle Division is willing to pay $286 to purchase the frames from Bonita Assume that Bonita has excess capacity and is able to meet all of the Cycle Division's needs. If the Cycle Division buys 1,090 frames from Bonita, determine the following: (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) (1) Effect on the income of the Cycle Division (2) Effect on the income of Bonita $ (3) Effect on the income of Sheridan

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