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Stavos Company's Screen Division manufactures a standard screen for high-definition televisions (HDTVs). The cost per screen 15: Variable cost per screen $125 Fixed cost
Stavos Company's Screen Division manufactures a standard screen for high-definition televisions (HDTVs). The cost per screen 15: Variable cost per screen $125 Fixed cost per screen 29 $154 Total cost per screen 'Based on a capacity of 800,000 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 $191 per screen for all sales. The net operating income associated with the Quark Division's HDTV is computed as follows: Selling price per unit $582 Variable cost per unit: Cost of the screen: $191 Variable cost of electronic parts 232 Total variable cost 423 Contribution margin 159 Fixed costs per unit Net operating incone per unit 85 $.74 *Based on a capacity of 150,000 units per year. The Quark Division has an order from an overseas source for 4,500 HDTVs. The overseas source wants to pay only $402 per
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