Ash Ltd has two divisions, Division A and Division B. Division A manufactures component Beta, of which variable cost is £18 per unit. The annual capacity of Division A is 1,900 units and all are transferred to division B. Division B incurs extra cost of £20 to transform component Beta into component Gama, which is sold to the external market for £66 each. Calculate the profit margin of each division

Ash Ltd has two divisions, Division A and Division B. Division A manufactures component Beta, of which variable cost is £18 per unit. The annual capacity of Division A is 1,900 units and all are transferred to division B. Division B incurs extra cost of £20 to transform component Beta into component Gama, which is sold to the external market for £66 each. Calculate the profit margin of each division

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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