Question Details
The Axle Division of Becker Company produces axles for off-road
sport vehicles. One-third of Axle's 45,300 unit output is sold to
an internal division of Becker; the remainder is sold to outside
customers. Axles' estimated operating profit for the year is:
|
Internal |
Outside | ||||
| Sales | $ | 320,000 | $ | 570,000 | |
| Variable costs | 166,100 | 332,200 | |||
| Fixed costs | 31,700 | 61,700 | |||
| Operating
profits | $ | 122,200 | $ | 176,100 | |
| Unit sales | 15,100 | 30,200 | |||
The internal division has an opportunity to purchase 15,100
axles of the same quality from an outside supplier on a continuing
basis. The purchase price would be $18.50. If the Axle Division is
now operating at full capacity and can sell all its units to
outside customers at the present selling price, what is the minimum
selling price that Axle should accept from the internal
division?
|
| $18.87. | |
| $7.87. | |
| $21.19. | |
| $18.50. |
Solution details:
Answered
QUALITY
Approved
ANSWER RATING
This question was answered on: Dec 08, 2020
Solution~000652147653937.zip (25.37 KB)
This attachment is locked
We have a ready expert answer for this paper which you can use for in-depth understanding, research editing or paraphrasing. You can buy it or order for a fresh, original and plagiarism-free solution (Deadline assured. Flexible pricing. TurnItIn Report provided)
Pay using PayPal (No PayPal account Required) or your credit card . All your purchases are securely protected by .
About this Question
STATUSAnswered
QUALITYApproved
DATE ANSWEREDDec 08, 2020
EXPERTTutor
ANSWER RATING
GET INSTANT HELP/h4>
We have top-notch tutors who can do your essay/homework for you at a reasonable cost and then you can simply use that essay as a template to build your own arguments.
You can also use these solutions:
- As a reference for in-depth understanding of the subject.
- As a source of ideas / reasoning for your own research (if properly referenced)
- For editing and paraphrasing (check your institution's definition of plagiarism and recommended paraphrase).
NEW ASSIGNMENT HELP?
Order New Solution. Quick Turnaround
Click on the button below in order to Order for a New, Original and High-Quality Essay Solutions. New orders are original solutions and precise to your writing instruction requirements. Place a New Order using the button below.
WE GUARANTEE, THAT YOUR PAPER WILL BE WRITTEN FROM SCRATCH AND WITHIN A DEADLINE.
