T 355 Question 23 (15 marks) Mark to review this question at the end of the exam Elektroniks Company has two divisions: A and B. Division A makes a silicon part R27 that cannot be acquired from any other manufacturer. It sells this product for $10.00. The variable cost of production is $7.25 Due to a downturn in demand, Division B is operating at only half of its capacity and has bid on a job that it desperately needs to win. The job would contain part R27. The cost breakdown of the bid is as follows: Part R27 Other parts required Variable costs of production Fixed factory overhead Variable selling & admin Profit component Bid price $8.00 $10.00 $30.00 $8.00 $15.00 $5.00 $76.00 Required: a Should the Division A transfer part R27 to Division B for this job? Why or why not? (8 marks) Discuss whether a transfer is in the best interest of Elektroniks Company as a whole (7 marks) Font Size b20*2x2 |, Next Press ALT O for help Save History MacBook Air