Please show how to solve. Thank you Division A of Sebastian Enterprises manufactures...

90.2K

Verified Solution

Question

Accounting

image

image

Please show how to solve. Thank you

Division A of Sebastian Enterprises manufactures a product called XYZ. Current data for Division A are as follows: Capacity Current production & sales 62643 46948 $92.97 33.88 Per unit data Selling price Variable costs - production Variable costs - marketing relating to external sales 15.42 Division B of Sebastian Enterprises currently buys 21302 units of XYZ yearly from an outside supplier at a price of $58.49. Division B would like to buy the 21302 units of XYZ it needs annually from Division A. What is the incremental benefit (cost) to Sebastian Enterprises if an internal transfer takes place? Select one: oa. $-49092 b. $524242 oc. $1245954 ed. $279385

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