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Please bold answer! Thank you! Frocks and Gowns, Incocporated, has two divisions, Day Wear and Night Wear. The Day Wear Division has an investment base
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Frocks and Gowns, Incocporated, has two divisions, Day Wear and Night Wear. The Day Wear Division has an investment base of $790.000 and pioduces (and sells) 110.000 units of Collars at a market price of $1140 pet unit. Variable costs for the Collars total $5.60 per unt, and fixed charges are $5.00 per unit (based on a capacily of 130.000 units. The Night Wear Division wants to purchase 29.000 units of Collats from The Day Wear Dlyislon. However, the Night Wear Division is only willing to pay 57.65 per unit. What is the contribution margin for the Doy Wear Division if it transfers 29,000 units to the Night Wear Division at $7.65 per unit? Multigle Choice 480000 4645.2500 5638000 willing to pay $7.65 per unit. What is the contribution margin for the Day Wear Division if it transfers 29.000 units to the Night Wear Division at $7.65 per unit? Multiple Choice $88,000 $645.250 $638,000 $841,500 Step by Step Solution
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