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Your Question: SHALOM PEACE Shalom Department makes a part that it sells to customers outside of the company. Data concerning this part appear below: Selling price to outsiders Variable cost per unit 75 55 Amounts must be in whole numbers. Example: 88,000 or (88,000) Unit costs be in whole numbers. Example: 88 Format of percentages: 88% Words must be in capital letters. BUYING DEPARTMENT SELLING DEPARTMENT Total fixed costs Capacity in units Peace Department of the same company would like to use the part manufactured by Shalom Department in one of its products. Peace Department currently purchases a similar part made by an outside company for P70 per unit and would substitute the part made by Shalom Department. Peace Department requires 5,000 units of the part each period. Shalom Department has ample excess capacity to handle all of Peace Department's needs without any increase in fixed costs and without cutting into outside sales of the part. 400,000 25,000

Your Question: SHALOM PEACE Shalom Department makes a part that it sells to customers outside of the company. Data concerning this part appear below: Selling price to outsiders Variable cost per unit 75 55 Amounts must be in whole numbers. Example: 88,000 or (88,000) Unit costs be in whole numbers. Example: 88 Format of percentages: 88% Words must be in capital letters. BUYING DEPARTMENT SELLING DEPARTMENT Total fixed costs Capacity in units Peace Department of the same company would like to use the part manufactured by Shalom Department in one of its products. Peace Department currently purchases a similar part made by an outside company for P70 per unit and would substitute the part made by Shalom Department. Peace Department requires 5,000 units of the part each period. Shalom Department has ample excess capacity to handle all of Peace Department's needs without any increase in fixed costs and without cutting into outside sales of the part. 400,000 25,000

Cornerstones of Cost Management (Cornerstones Series)
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter3: Cost Behavior
Section: Chapter Questions
Problem 5CE: Refer to Cornerstone Exercise 3.4 for data on Dohini Manufacturing Companys purchasing cost and...
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Whose higer in terms in buyisng and selling dep

Your Question: SHALOM PEACE Shalom Department makes a part that it sells to customers outside of the company. Data concerning this part appear below: Selling price to outsiders Variable cost per unit 75 55 Amounts must be in whole numbers. Example: 88,000 or (88,000) Unit costs be in whole numbers. Example: 88 Format of percentages: 88% Words must be in capital letters. BUYING DEPARTMENT SELLING DEPARTMENT Total fixed costs Capacity in units Peace Department of the same company would like to use the part manufactured by Shalom Department in one of its products. Peace Department currently purchases a similar part made by an outside company for P70 per unit and would substitute the part made by Shalom Department. Peace Department requires 5,000 units of the part each period. Shalom Department has ample excess capacity to handle all of Peace Department's needs without any increase in fixed costs and without cutting into outside sales of the part. 400,000 25,000
Transcribed Image Text:Your Question: SHALOM PEACE Shalom Department makes a part that it sells to customers outside of the company. Data concerning this part appear below: Selling price to outsiders Variable cost per unit 75 55 Amounts must be in whole numbers. Example: 88,000 or (88,000) Unit costs be in whole numbers. Example: 88 Format of percentages: 88% Words must be in capital letters. BUYING DEPARTMENT SELLING DEPARTMENT Total fixed costs Capacity in units Peace Department of the same company would like to use the part manufactured by Shalom Department in one of its products. Peace Department currently purchases a similar part made by an outside company for P70 per unit and would substitute the part made by Shalom Department. Peace Department requires 5,000 units of the part each period. Shalom Department has ample excess capacity to handle all of Peace Department's needs without any increase in fixed costs and without cutting into outside sales of the part. 400,000 25,000
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