What would be the total contribution to profit to the company as a whole for 10,000 units transferred to Division B and later sold to outside customers at P21 per unit. * , Division A has an expected annual production of 50,000 units and fixed manufacturing costs of P300,000. The full absorption cost per unit based on the expected annual production is shown below: [Variable cost Fixed costs Full absorption cost P6 P12 Division A has idle capacity and Division B is considering buying 10,000 units from Divsion A to be processed further and to sell at P21 per unit. Division B would incur additional processing costs and selling costs of P6 and P5 per unit, respectively. O P20,000 O P40,000 ) (P20,000) O P80,000
What would be the total contribution to profit to the company as a whole for 10,000 units transferred to Division B and later sold to outside customers at P21 per unit. * , Division A has an expected annual production of 50,000 units and fixed manufacturing costs of P300,000. The full absorption cost per unit based on the expected annual production is shown below: [Variable cost Fixed costs Full absorption cost P6 P12 Division A has idle capacity and Division B is considering buying 10,000 units from Divsion A to be processed further and to sell at P21 per unit. Division B would incur additional processing costs and selling costs of P6 and P5 per unit, respectively. O P20,000 O P40,000 ) (P20,000) O P80,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:What would be the total contribution to profit to the company as a whole for 10,000 units
transferred to Division B and later sold to outside customers at P21 per unit. *
Division A has an expected annual production of 50,000 units and fixed manufacturing
costs of P300,000. The full absorption cost per unit based on the expected annual
production is shown below:
Variable cost
Fixed costs
Full absorption cost
P6|
6
P12
Division A has idle capacity and Division B is considering buying 10,000 units from
Divsion A to be processed further and to sell at P21 per unit. Division B would incur
additional processing costs and selling costs of P6 and P5 per unit, respectively.
P20,000
P40,000
(P20,000)
P80,000
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