Steven oversees the production department for a factory that makes plastic outdoor chairs. department sells all of its production to external parties, and the department has an overall production capacity of 150,000 chairs. Their sales data is as follows: Sales (90,000 chairs) a $460,000, Variable Costs are $206,200, and Fixed Costs are $194,350. The internal Resale would like to purchase 26,700 chairs from the Production Department. They will be selling external retailers for $15.49 per chair. If the Resale Division negotiates a deal with the Pro Department to purchase each chair for its absorption cost plus a 2.4% markup, then what amount of Operating Income the Resale Division would report for their sale of 26,700 cha per unit cost to nearest cents.
Steven oversees the production department for a factory that makes plastic outdoor chairs. department sells all of its production to external parties, and the department has an overall production capacity of 150,000 chairs. Their sales data is as follows: Sales (90,000 chairs) a $460,000, Variable Costs are $206,200, and Fixed Costs are $194,350. The internal Resale would like to purchase 26,700 chairs from the Production Department. They will be selling external retailers for $15.49 per chair. If the Resale Division negotiates a deal with the Pro Department to purchase each chair for its absorption cost plus a 2.4% markup, then what amount of Operating Income the Resale Division would report for their sale of 26,700 cha per unit cost to nearest cents. O $291,831 O $351,105 O $198,235 O $3,612
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