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Presently, the Cycle Division buys its body frames from an outside supplier. However Pina Colada has another division, FrameBody, hat makes body frames for other
Presently, the Cycle Division buys its body frames from an outside supplier. However Pina Colada has another division, FrameBody, hat 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 $357 per frame. The variable cost for FrameBody is $271. The Cycle Division is willing to pay $279 to purchase the frames from FrameBody. a) Assume that FrameBody has excess capacity and is able to meet all of the Cycle Division's needs. If the Cycle Division buys 1,020 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 \$ (2) Effect on the income of FrameBody $ Presently, the Cycle Division buys its body frames from an outside supplier. However Pina Colada has another division, FrameBody, hat 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 $357 per frame. The variable cost for FrameBody is $271. The Cycle Division is willing to pay $279 to purchase the frames from FrameBody. a) Assume that FrameBody has excess capacity and is able to meet all of the Cycle Division's needs. If the Cycle Division buys 1,020 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 \$ (2) Effect on the income of FrameBody $
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