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please help with this accounting problem Stavos Company's Screen Division manufactures a standard screen for high-definition televisions (HDTVs). The cost per screen is: Part of
please help with this accounting problem
Stavos Company's Screen Division manufactures a standard screen for high-definition televisions (HDTVs). The cost per screen is: 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. The net operating income associated with the Quark Division's HDTV is computed as follows: The Quark Division has an order from an overseas source for 5,300 HDTVs. The overseas source wants to pay only $397 per unit. Required: 1. Assume the Quark Division has enough idie capacity to fill the 5,300-unit order. Is the division likely to accept the $397 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 Dlvision rejects the $397 price? outside manufacturers. Under these conditions. what is the Screen Division is operating at capacity and could sell all of its screens to unit basis) if the Quark Division accepts the $397 unit price? ine Wuark Uivision nas an order trom an overseas source for 5, suU HUIVs, ine overseas source wants to pay oniy $ JY/ Required: 1. Assume the Quark Division has enough idle capacity to fill the 5,300-unit order. Is the division likely to accept the $397 reject it? 2. Assume both the Screen Division and the Quark Division have idle capacity. Under these conditions, what is the financi (disadvantage) for the company as a whole (on a per unit basis) if the Quark Division rejects the $397 price? 3. Assume the Quark Division has idle capacity but that the Screen Division is operating at capacity and could sell all of its outside manufacturers. Under these conditions, what is the financial advantage (disadvantage) for the company as a whole unit basis) if the Quark Division accepts the $397 unit price? Complete this question by entering your answers in the tabs below. 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 $397 price? (Any "Financial Disadvantage" amounts should be entered as a negative.) 1. Assume the Quark Division has enough idle capacity to fill the 5,300-unit order. Is the division likely to accept the $397 Required: 2. Assume both the Screen Division and the Quark Division have idle capacity. Under these conditions, what is the financi reject it? (disadvantage) for the company as a whole (on a per unit basis) if the Quark Division rejects the $397 price? 3. Assume the Quark Division has idle capacity but that the Screen Division is operating at capacity and could sell all of its outside manufacturers. Under these conditions, what is the financial advantage (disadvantage) for the company as a whole unit basis) if the Quark Division accepts the $397 unit price? Complete this question by entering your answers in the tabs below. Assume the Quark Division has idle capacity but that the Screen Division is operating at capacity and could sell all of its screens to outside manufacturers. Under these conditions, what is the financial advantage (disadvantage) for the company as a whole (on a per urit basis) if the Quark Division accepts the $397 unit price? (Any "Financial Disadvantage" amounts should be entered as a negative.) Step by Step Solution
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