Part 1 i Required information Saved The Post Division of the M.T. Woodhead Company produces basic posts that can be sold to outside customers or sold to the Lamp Division of the M.T. Woodhead Company. Last year, the Lamp Division bought all of its 25,000 posts from the Post Division at $2.00 each. The following data are available for last year's activities of the Post Division. Capacity in Units Selling Price per Post to Outside Customers Variable Costs per Post Fixed Costs, Total 300,000 posts $2.25 $0.90 $120,000 The total fixed costs would be the same for all the alternatives considered below. Appendix 11A) Suppose the transfer of posts to the Lamp Division will cut into sales to outside customers by 15,000 units. What is the l Division? Multiple Choice $1.71 $1.75 $0.90
Part 1 i Required information Saved The Post Division of the M.T. Woodhead Company produces basic posts that can be sold to outside customers or sold to the Lamp Division of the M.T. Woodhead Company. Last year, the Lamp Division bought all of its 25,000 posts from the Post Division at $2.00 each. The following data are available for last year's activities of the Post Division. Capacity in Units Selling Price per Post to Outside Customers Variable Costs per Post Fixed Costs, Total 300,000 posts $2.25 $0.90 $120,000 The total fixed costs would be the same for all the alternatives considered below. Appendix 11A) Suppose the transfer of posts to the Lamp Division will cut into sales to outside customers by 15,000 units. What is the l Division? Multiple Choice $1.71 $1.75 $0.90
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The Post Division of the M.T. Woodhead Company produces basic posts that can be sold to outside customers or sold to
the Lamp Division of the M.T. Woodhead Company. Last year, the Lamp Division bought all of its 25,000 posts from the
Post Division at $2.00 each. The following data are available for last year's activities of the Post Division.
Capacity in Units
Selling Price per Post to Outside
Customers
Variable Costs per Post
Fixed Costs, Total
300,000 posts
$2.25
$0.90
$120,000
The total fixed costs would be the same for all the alternatives considered below.
Appendix 11A) Suppose the transfer of posts to the Lamp Division will cut into sales to outside customers by 15,000 units. What is the l
Division?
Multiple Choice
$1.71
$1.75
$0.90
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