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Required 1 Required 2 Required 3 Assume the Quark Division has enough idle capacity to ll the 4,900-unit order. [s the division likely to accept
Required 1 Required 2 Required 3 Assume the Quark Division has enough idle capacity to ll the 4,900-unit order. [s the division likely to accept the $39? price or to reject it? Required 1 Required 2 Required 3 Assume both the Screen Division and the Quark Division have idle capacity. Under these conditions, what is the nancial advantage (disadvantage) for the company as a whole (on a per unit basis) if the Quark Division rejects the $39? price? [Any "Financial Disadvantage" amounts should be entered as a negative.) ii 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 $39? unit price? [Any "Financial Disadvantage" amounts should be entered as a negative.) Show less; Problem 11-23 (Algo) Market-Based Transfer Price [LO11-3] Stavos Company's Screen Division manufactures a standard screen for highdefinition televisions {HDTVsi The cost per screen is: Variable cost per screen $ 11? Fixed cost per screen 2?* Total cost per screen $ 144 *Eiased 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 lCiuark Division, which produces an HDTV under its own name. The Screen Division charges $188 per screen for all sales. The net operating income associated with the Quark Division's HDTV is computed as follows: Selling price per unit $ 585 Variable cost per unit: Cost of the screen $ 188 Variable cost of electronic parts 236 Total variable cost 418 Contribution margin 15? Fixed costs per unit 85* Net operating income per unit $ 52 *Eiased on a capacity of 180.000 units per year. The lCiiuark Division has an order from an overseas source for 4.900 HDTVs. The overseas source wants to pay only $397 per unit. Required: 1. Assume the Quark Division has enough idle capacity to fill the 4,900unit 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. Underthese conditions. what is the financial advantage {disadvantage} for the company as a whole (on a per unit basis) ifthe Quark Division rejects the $397 price? 3. Assume the lCluark 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 acceptsthe $397 unit price
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