Div A's unit cost data is below. Div B has been purchasing 1,000 units of...

70.2K

Verified Solution

Question

Accounting

Div A's unit cost data is below. Div B has been purchasing 1,000 units of the same part for $215.00 from another vendor and has offered Div A $160.00 for 1,000 units. Div A's normal selling price is $210.00. Div A's capacity is 15,000 units and current sales to outside customers is 13,000 units. What is the income effect for the company if 1,000 units are transferred at $160.00 rather than purchased by Div B at $215.00? DM $60.00 DL 30.00 VOHD 15.00 FOHD 24.00 Variable selling 45.00 Fixed selling 9.00

Group of answer choices $23,000 $55,000 $65,000 $10,000

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students