Stavos Company's Screen Division manufactures a standard screen for high-definition televisions (HDTVS). The cost per screen is. nts 274 Variable cost per screen $ 116 Fixed cost per screen Total cost per screen $143 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 $178 per screen for all sales. The net operating income associated with the Quark Division's HDTV is computed as follows: 414 166 06. $ 80 Selling price per unit $ 580 Variable cost per units cost of the screen $170 Variable cont of electronie parts 236 Total variable cout Contribution margin Pixed costs per unit Net operating income per unit Based on a capacity of 210,000 units per year. The Quark Division has an order from an overseas source for 5,500 HDTVs. The oferseas source wants to pay only $398 per unit. Required: 1. Assume the Quark Division has enough idle capacity to fill the 5,500 unit order, is the division likely to accept the $398 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 $398 price? Required: 1. Assume the Quark Division has enough idle capacity to fill the 5,500-unit order. Is the division likely to accept the $398 price reject it? 2. Assume both the Screen Division and the Quark Division have idle capacity. Under these conditions, what is the financial adv. (disadvantage) for the company as a whole (on a per unit basis) if the Quark Division rejects the $398 price? 3. Assume the Quark Division has idle capacity but that the Screen Division is operating at capacity and could sell all of its scree outside manufacturers. Under these conditions, what is the financial advantage (disadvantage) for the company as a whole (on a unit basis) if the Quark Division accepts the $398 unit price? Answer is not complete. 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 5,500-unit order. Is the division likely to accept the $398 price or to reject it? Reject Accept ine wuark UIVision has an order tom an overseas source or 3,50U HUIVs. The overseas source wants to pay only yo per unit Required: 1. Assume the Quark Division has enough idle capacity to fill the 5,500-unit order. Is the division likely to accept the $398 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 $398 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 $398 unit price? Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Requiredt 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 $398 price? (Any "Financial Disadvantage amounts should be entered as a negative.) Financial advantage (disadvantage) on a per unit basis Required: 1. Assume the Quark Division has enough idle capacity to fill the 5,500-unit order. Is the division likely to accept the $398 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 $398 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 $398 unit price? Answer is not complete. 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 $398 unit price? (Any "Financial Disadvantage" amounts should be entered as a negative.) Show less Financial advantage (disadvantage) on a per unit basis
