45. Division A of ABC Corp. sells 96,000 units of Part X to the outside market. Part X sells forPhp12 each and has a variable cost per unit of Php8. Fixed cost per unit amounted to Php3.Division A has a capacity to produce 120,000 units per period. Division B currentlypurchases 15,000 units of Part X from Division A for Php12 each. Division B has beenapproached by an outside supplier that is willing to supply the parts needed.Assume that the outside supplier offered to supply each unit for Php10 each, which is correct?A. Division B profit will increase by Php15,000B. ABC Corp profit will decrease by Php30,000C. ABC Corp profit will decrease by Php60,000D. Division A profit will decrease by Php15,000

Variable cost means the cost which vary with the level of output and fixed cost means the cost which…

Answered: 45. Division A of ABC Corp. sells…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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