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The cycle Division of Concord Company has the following unit data related to its most recent cycle, the Roadbuster. Selling Price 2 , 5 0
The cycle Division of Concord Company has the following unit data related to its most recent cycle, the Roadbuster. Selling Price Body frame $ Other variable costs and contribution margin Presently, the Cycle Division buys its body frames from an outside supplier. However Concord has another division, FramBody, that makes body frames for other ccle companies. The Cycle Division believes that FrameBody's product is suitable for its new Roadbuster cycle. Presently, FrameBody sells its frames for $ per frame. The variable cost for FrameBody is $ The Cycle Division is willing to pay $ to purchase the frames from FraeBody. Assume that FrameBody does NOT have excess capacity and therefore would lose sales if the frames were sold to the Cycle Division. If the Cycle Division buys frames from FrameBody, determine the following: Effect on the income of the cycle division, Effect on the income of FrameBody, Effect on the income of Concord
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