Pharoah International Corporation has two divisions bets and gamma. Beta produces an electronic component that...
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Pharoah International Corporation has two divisions bets and gamma. Beta produces an electronic component that sells for $75 per unit with the following costs based on its capacity of 217.600 units Direct materials Direct labour $23 18 Variable overhead 4 Fixed overhead 11 Beta i operating at 79% of normal capacity and gamma is purchasing 17.000 units of the same component from an outside supplier for $ 69 per unit (a) X Your answer is incorrect Calculate the benefit. If any, to beta in selling to gamma 17,000 units at the outside supplier's price, Benefit $ 30 per unit
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