Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The company's Computer Division consists of two independent business units, the chips unit (CU) and the nal goods unit (FGU). CU has the capacity to

image text in transcribed

image text in transcribedimage text in transcribed
The company's Computer Division consists of two independent business units, the chips unit (CU) and the nal goods unit (FGU). CU has the capacity to produce up to 5,000 units per month of a chip, and the following is the total monthly production cost schedule for the chip at various levels of output: Number of chips 1,000 2,000 3,000 4,000 5,000 produced Total cost (RM) 35,000 50,000 65,000 80,000 90,000 Demands for chips are from both external customers and FGU. The following are demand schedules sold to the external customers: Number of chips sold (RM) FGU needs one unit of this chip to produce one unit of nished goods (there is no external source for the chips supply). FGU can sell a maximum of 4,000 units of the nished goods each month in total at a xed price of RM110 per unit for the both external sales and internal transfer. The monthly production cost schedule of FGU is as follow: Number of finished goods produced 1,000 2,000 3,000 4,000 (units) Further processing cost of finished 55,000 1 10,000 165,000 220,000 goods (RM)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Payroll Accounting 2020

Authors: Bernard J. Bieg, Judith A. Toland

30th edition

357117174, 978-0357117170

More Books

Students also viewed these Accounting questions