The machining division of Sheridan International has a capacity of 2,000 units. Its sales and cost data are: Selling price per unit Variable manufacturing costs per unit Variable selling costs per unit Total fixed manufacturing overhead The company profits would $75 increase 20 The machining division is currently selling 1,800 units to outside customers, and the assembly division of Sheridan International war to purchase 400 units from machining. If the transaction takes place, the variable selling costs per unit on the units transferred to assembly will be $0/unit, and not $6/unit. If Sheridan's assembly division is currently buying from an outside supplier at $69 per unit what will be the effect on overall company profits if internal sales for 400 units take place at the optimum transfer price? 6 224,400 ✓by $ 9,800.00

The machining division of Sheridan International has a capacity of 2,000 units. Its sales and cost data are: Selling price per unit Variable manufacturing costs per unit Variable selling costs per unit Total fixed manufacturing overhead The company profits would $75 increase 20 The machining division is currently selling 1,800 units to outside customers, and the assembly division of Sheridan International war to purchase 400 units from machining. If the transaction takes place, the variable selling costs per unit on the units transferred to assembly will be $0/unit, and not $6/unit. If Sheridan's assembly division is currently buying from an outside supplier at $69 per unit what will be the effect on overall company profits if internal sales for 400 units take place at the optimum transfer price? 6 224,400 ✓by $ 9,800.00

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter10: Short-term Decision Making

Section: Chapter Questions

Problem 4EB: Dimitri Designs has capacity to produce 30,000 desk chairs per year and is currently selling all...

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