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please complete the following Check mm 2 Stavos Company's screen Division manufactures a standard screen for high-definition televisions (HDTVs). The cost per screen is: 12.5
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Check mm 2 Stavos Company's screen Division manufactures a standard screen for high-definition televisions (HDTVs). The cost per screen is: 12.5 points Variable cost per screen 118 Fixed cost per screen 32* Total cost per screen 150 eBook Based on a capacity of 760,000 screens per year Print Part of the Screen Division's output is sold to outside manufacturers of HDTVs and part is sold to Stavos Company's Quark Division, which produces an HDTV under its own name. The Screen Division charges $186 per screen for all sales References The costs, revenue, and net operating income associated with the Quark Division's HDTV are given below: 578 Selling price per unit Variable cost per unit: Cost of the screen $186 Variable cost of electronic parts 233 419 159 Total variable cost Contribution margin Fixed costs per unit 85* $ 74 Net operating income per unit "Based on a capacity of 170,000 units per year The Quark Division has an order from an overseas source for 4,500 HDTVs. The overseas source wants to pay only $401 per unit. Required: 1. Assume the Quark Division has enough idle capacity to fill the 4,500-unit order. Is the division likely to accept the $401 price or to reject it? 2. Assume both the Screen Division and the Quark Division have idle capacity. Under these conditions, what is the financial advantage (disadvantage) for the company as a whole (on a per unit basis) if the Quark Division rejects the $401 priceStep by Step Solution
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