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Label Each Step: The Kelly - Elias Corporation, manufacturer of tractors and other heavy farm equipment, is organized along decentralized product lines, with each manufacturing

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The Kelly - Elias Corporation, manufacturer of tractors and other heavy farm equipment, is organized along decentralized product lines, with each manufacturing division operating as a separate profit center. Each division manager has been delegated full authority on all decisions involving the sale of that division's output both to outsiders and to other divisions of Kelly - Elias. 1. (Click the icon to view the information on the divisions.) The company already completed an analysis to determine if it was in its best interest to have division C purchase 1,000 units from an external supplier for $140 per unit, assuming that there are no alternative uses for internal facilities of division A. (Click the icon to view the results of the analysis.) Now, assume that division A can sell the 1,000 units to other customers at $169 per unit, with variabie marketing costs of \$4per unit. Begin by calculating the contribution margin from selling units to other customers. Then calculate the net benefit (cost) to the company as a whole. (Enter a net cost using parentheses or a minus sign.) Less: Contribution margin from selling units to other customers More info Division C has in the past always purchased its requirement of a particular tractor-engine component from division A. However, when informed that division A is increasing its selling price to $165, division C 's manager decides to purchase the engine component from external suppliers. Division C can purchase the component for $140 per unit in the open market. Division A insists that, because of the recent installation of some highly specialized equipment and the resulting high depreciation charges, it will not be able to earn an adequate retum on its investment unless it raises its price. Division A's manager appeals to top management of Kelly - Elas for support in the dispute with division C and supplies the following operating data: C's annual purchases of the tractor-engine component A's variable cost per unit of the tractor-engine component A's fixed cost per unit of the tractor-engine component 1,000 units $130 $15 The Kelly - Elias Corporation, manufacturer of tractors and other heavy farm equipment, is organized along decentralized product lines, with each manufacturing division operating as a separate profit center. Each division manager has been delegated full authority on all decisions involving the sale of that division's output both to outsiders and to other divisions of Kelly - Elias. (Click the icon to view the information on the divisions.) The company already completed an an: determine if it was in its best interest to division C purchase 1,000 units from an supplier for $140 per unit, assuming tha no alternative uses for internal facilities A. II: (Click the icon to view the results of the analysis.) Now, assume that division A can sell the units to other customers at $169 per unit variable marketing costs of $4 per unit. Begin by calculating the contribution margin from selling units to other customers. Then calculate the net be to the company as a whole. (Enter a net cost using parentheses or a minus sign.) Les: Contribution margin from selling units to other customers Data table The Kelly - Elias Corporation, manufacturer of tractors and other heavy farm equipment, is organized along decentralized product lines, with each manufacturing division operating as a separate profit center. Each division manager has been delegated full authority on all decisions involving the sale of that division's output both to outsiders and to other divisions of Kelly - Elias. (Click the icon to view the information on the divisions.) The company already completed an analysis to determine if it was in its best interest to have division C purchase 1,000 units from an external supplier for $140 per unit, assuming that there are no alternative uses for internal facilities of division A. (Click the icon to view the results of the analysis.) Now, assume that division A can sell the 1,000 units to other customers at \$169per unit, with variable marketing costs of $4 per unit. Begin by calculating the contribution margin from selling units to other customers. Then calculate the net benefit (cost) to the company as a whole. (Enter a net cost using parentheses or a minus sign.) Les Contribution margin from selling units to other customers Requirement Determine whether Kelly - Elias will benefit if division C purchases the 1,000 units from external suppliers at $140 per unit. Show your computations

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