9. The first division of Furrow Company produces part I that is used by OEN's as a key part in their products. Costs and sales data on Part I are as follows: P100 Selling price per unit Variable cost per unit Fixed cost per unit (* based on 40,000 units capacity per annum) 60 24* Furrow Company's second division is introducing a new product that will use Part1. An outside supplier has quoted second division a price of P96 per unit This the usual P100 price less a quantity discount due to the large number of second division's requirement. represents If the second division would buy 15,000 units of Part 1 from the first division, the effect on the corporate profits would be: Increase by P540,000. b. а. с. Increase by P210,000. Increase by P1,500,000 d. Reduced by P60,000. (грсра)

9. The first division of Furrow Company produces part I that is used by OEN's as a key part in their products. Costs and sales data on Part I are as follows: P100 Selling price per unit Variable cost per unit Fixed cost per unit (* based on 40,000 units capacity per annum) 60 24* Furrow Company's second division is introducing a new product that will use Part1. An outside supplier has quoted second division a price of P96 per unit This the usual P100 price less a quantity discount due to the large number of second division's requirement. represents If the second division would buy 15,000 units of Part 1 from the first division, the effect on the corporate profits would be: Increase by P540,000. b. а. с. Increase by P210,000. Increase by P1,500,000 d. Reduced by P60,000. (грсра)

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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