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UNIVERSITY OF WOLLONGONG AUSTRALIA (Total: 14 marks) frames from the per year, production costs per frame Question 1 ed to purchase 90 000 has offer
UNIVERSITY OF WOLLONGONG AUSTRALIA (Total: 14 marks) frames from the per year, production costs per frame Question 1 ed to purchase 90 000 has offer Frame Division for $170 per unit At a normal volume of are as follows The Assembly Division of Hunter Valley Bicycles Company weelc slide LtL $80 matenals ct manufacturing labour aniable factory overhead ixed factory overhead ota/ The Frame Division has been selling 250 000 frames per year to outside buyers at $230 each; capacity is 350 000 frames per year. The Assembly Division has been buying frames from outside sources for $225 each Required: a) Explain whether the Frame Division Manager should accept the offer b) Explain whether,from the company's perspective, the internal sales will be of any benefit. 7 marks) (7 marks) Question 2 Botany Bay Fisheries needs a new refrinonti (Total: 14 marks)
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