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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Whose higer in terms in buyisng and selling dep
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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