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sove for question D Pharoah International Corporation has two divisions, beta and gamma. Beta produces an electronic component that sells for $ 75 per unit
sove for question D
Pharoah International Corporation has two divisions, beta and gamma. Beta produces an electronic component that sells for $ 75 per unit with the following costs based on its capacity of 217,600 units: $ 23 18 Direct materials Direct labour Variable overhead Fixed overhead 4 11 Beta is operating at 79% of normal capacity and gamma is purchasing 17,000 units of the same component from an outside supplier for $ 69 per unit (a) Your answer is correct Calculate the benefit, if any, to beta in selling to gamma 17.000 units at the outside supplier's price. Benent $ 24 per unit eTextbook and Media penent PE U e Textbook and Media Solution Attempts: 2 of 3 used b (b) Your answer is correct. Calculate the lowest price beta would be willing to accept Lowest price $ 45 eTextbook and Media Attempts: 1 of 3 used Your answer is correct. If beta is operating at full capacity, what would be the lowest transfer price that beta division is willing to accept? Lowest transfer price 75 eTextbook and Media Attempts: 1 of 3 used d (d) Assume that a transfer price of $ 75 is used between beta and gamma. Calculate the effect on the profits of beta, gamma, and Pharoah International Corporation. Profits Effects Beta $ Gamma $ Pharoah $ e Textbook and Media Save for Later Attempts:0 of 3 used Submit Step by Step Solution
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