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

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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