=+6. Assume that as of September 1, 2008, 13,000 units of flat panel displays have been produced
Question:
=+6. Assume that as of September 1, 2008, 13,000 units of flat panel displays have been produced and sold during the current year. Analysis ofthe domestic market indicates that 4,400 addi¬
tional units are expected to be sold during the remainder ofthe year at the normal product price determined under the total cost concept. On September 3, Plasma Labs Inc. received an offer from Vision Systems Inc. for 2,600 units offlat panel displays at $255 each. Vision Systems Inc. will market the units in Canada under its own brand name, and no selling and administrative expenses associated with the sale will be incurred by Plasma Labs Inc. The additional business is not expected to affect the domestic sales offlat panel displays, and the additional units could be produced using existing capacity.
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