Exercise 22-12 (Part Level Submission) The Cycle Division of Ayala Company has the following per unit data related to its most recent cycle called Roadbuster. Selling price $2,130 Variable cost of goods sold Body frame $299 Other variable costs 900 1,199 Contribution margin $931 Presently, the Cycle Division buys its body frames from an outside supplier. However Ayala has another division, FrameBody, that makes body frames for other cycle companies. The Cycle Division believes that FrameBody's product is suitable for its new Roadbuster cycle. Presently, FrameBody sells its frames for $345 per frame. The variable cost for FrameBody is $255. The Cycle Division is willing to pay $287 to purchase the frames from FrameBody. Collapse question part (a) Correct answer. Your answer is correct. Assume that FrameBody has excess capacity and is able to meet all of the Cycle Division's needs. If the Cycle Division buys 1,140 frames from FrameBody, 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 $Entry field with correct answer 13680 (2) Effect on the income of FrameBody $Entry field with correct answer 36480 (3) Effect on the income of Ayala $Entry field with correct answer 50160 SHOW SOLUTION LINK TO TEXT Attempts: 1 of 5 used Collapse question part (b) Partially correct answer. Your answer is partially correct. Try again. Assume that FrameBody does not have excess capacity and therefore would lose sales if the frames were sold to the Cycle Division. If the Cycle Division buys 1,140 frames from FrameBody, 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 income of the Cycle Division $Entry field with correct answer 13680

QUESTION:

(2) Effect on the income of FrameBody $

(3) Effect on income of Ayala $