Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

QUESTION 2 The Dubs division of Fast Company (the parent company produces wheels for off-road sport vehicles, One hall of Dut's output is sold to

image text in transcribed
QUESTION 2 The Dubs division of Fast Company (the parent company produces wheels for off-road sport vehicles, One hall of Dut's output is sold to the Hoon division of Fast, the remainder is sold to outside customers. Dub's estimated operating profit for the year is shown in the table Totals Internal Sales $300,000 Sales External Sales $400,000 $160,000 $60,000 $700,000 $320,000 Var Mlg Var GBA $160,000 $40,000 CM $100,000 $180,000 $32,000 $100,000 $280,000 $56,000 $24,000 $36,000 $48,000 Fixed Mlg Faced GEA Op. Profits Unit Sales $40,000 1,000 $100,000 1,000 $84,000 $140,000 2.000 Unless otherwise stated assume the fixed costs given above are allocated costs and unavoidable. Hoon division has an opportunity to purchase 1,000 wheels of the same quality from an outside supplier on a continuing basis for $250.00 per Wheel What would be the full manufacturing cost of a wheel in the Dubs division if production were increased by 50% both for transfer to Hoon and for external sales? Assume there are no capacity constraints. Round to the nearest 50.01

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Business Innovation Audit

Authors: William Tate

1st Edition

0955970733, 978-0955970733

More Books

Students also viewed these Accounting questions

Question

1. What are the pros and cons of diversity for an organisation?

Answered: 1 week ago

Question

1. Explain the concept of diversity and equality in the workplace.

Answered: 1 week ago