Cost Accounting, Student Value Edition Plus MyAccountingLab with Pearson eText -- Access Card Package (15th Edition)
Cost Accounting, Student Value Edition Plus MyAccountingLab with Pearson eText -- Access Card Package (15th Edition)
15th Edition
ISBN: 9780133781106
Author: Charles T. Horngren, Srikant M. Datar, Madhav V. Rajan
Publisher: PEARSON
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Chapter 22, Problem 22.32P

1.

To determine

The C division’s current annual level of profit.

Given information:

The selling price per scissors is $16.

The variable cost per unit is $9.

The total units produced are 30,000.

The fixed costs of production are $60,000.

2.

To determine

The change in the UP division’s profit if it accepts JG’s offer and will the manager will accept the offer if the aim is to maximize the UP’s division profit.

Given information:

Selling price is $12.5.

Manufacturing price is $9.

Order offered for the 4,000 units.

3.

To determine

Whether the top management of B Corporation want the C division to accept the offer and calculate the change in firm-wide profit with the HD’s offer.

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