Problem 11-23 (Algo) Market-Based Transfer Price [LO11-3] Stavos Company's Screen Division manufactures a standard screen for high-definition televisions (HDTVs). The cost per screen is: Variable cost per screen $ 124 Fixed cost per screen 28* Total cost per screen $ 152 *Based on a capacity of 810,000 screens per year. 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 $194 per screen for all sales. The net operating income associated with the Quark Division's HDTV is computed as follows: Selling price per unit $ 576 Variable cost per unit: Cost of the screen $ 194 Variable cost of electronic parts 230 Total variable cost 424 Contribution margin 152 Fixed costs per unit 89* Net operating income per unit $ 63 *Based on a capacity of 190,000 units per year. The Quark Division has an order from an overseas source for 4,600 HDTVs. The overseas source wants to pay only $403 per unit. Required: 1. Assume the Quark Division has enough idle capacity to fill the 4,600-unit order. Is the division likely to accept the $403 price or to Q Search DELLIlle wudIk DIVISIUli lids dil bluei II III all overseas source 101 4,VU MUI vs. Ille overseas source wallis LU pay Uilly $403 pel UIIIL. Required: reject it? 1. Assume the Quark Division has enough idle capacity to fill the 4,600-unit order. Is the division likely to accept the $403 price or to 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 $403 price? 3. 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 unit basis) if the Quark Division accepts the $403 unit price? Complete this question by entering your answers in the tabs below. Required 1 .Required 2 Required 3 Assume the Quark Division has enough idle capacity to fill the 4,600-unit order. Is the division likely to accept the $403 price or to reject it? Reject Accept DELL Q Search DLIlle wudik DIVISIUli lids dil videl II III diloverseas source 101 4,6UV muIvs. Ille overseas source wallis to pay uilly $403 pel UIIIL. Required: 1. Assume the Quark Division has enough idle capacity to fill the 4,600-unit order. Is the division likely to accept the $403 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 $403 price? 3. 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 unit basis) if the Quark Division accepts the $403 unit price? Complete this question by entering your answers in the tabs below. Required 1 .Required 2 Required 3 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 $403 price? (Any 'Financial Disadvantage" amounts should be entered as a negative.) Financial advantage (disadvantage) on a per unit basis ( DELL Q SearchI le wudIk DIVISIUli lids dil videl II UI11 all overseas source 101 4,VU MUI VS. Ille overseas source wallis LU pay villy $405 pel UIIIL. Required: reject it? 1. Assume the Quark Division has enough idle capacity to fill the 4.600-unit order. Is the division likely to accept the $403 price or to 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 $403 price? 3. 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 unit basis) if the Quark Division accepts the $403 unit price? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 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 unit basis) if the Quark Division accepts the $403 unit price? (Any "Financial Disadvantage" amounts should be entered as a negative.) Show less A Financial advantage (disadvantage) on a per unit basis (DELL Q Search