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 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. If Shalom Department has excess capacity of 2,000 units, provide answers to the questions. 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. 75 55 400,000 25,000 Will there be an acceptable price range for both departments? If the selling department sets the price for the buying department at P71 per unit, wi the buying division accept the offer?

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 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. If Shalom Department has excess capacity of 2,000 units, provide answers to the questions. 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. 75 55 400,000 25,000 Will there be an acceptable price range for both departments? If the selling department sets the price for the buying department at P71 per unit, wi the buying division accept the offer?

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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