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Author Question: The Fabrication Division of American Car Company has offered to purchase 90,000 batteries from the ... (Read 81 times)

rmenurse

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on: Mar 6, 2021
The Fabrication Division of American Car Company has offered to purchase 90,000 batteries from the Electrical Division for $104 per unit. At a normal volume of 250,000 batteries per year, production costs per battery are as follows: 

Direct materials$ 40
Direct manufacturing labor30
Variable factory overhead12
Fixed factory overhead40
   Total$112

The Electrical Division has been selling 250,000 batteries per year to outside buyers at $136 each; capacity is 350,000 batteries per year. The Fabrication Division has been buying batteries from outside sources for $130 each. 

Required: 
a.Should the Electrical Division manager accept the offer? Explain. 
b.From the company's perspective, will the internal sales be of any benefit? Explain. 
Horngren's Cost Accounting: A Managerial Emphasis ¦ Datar, Rajan ¦ 16th Edition
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Marked as best answer by rmenurse on Mar 6, 2021

yahahah24021

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Reply #1 on: Mar 6, 2021
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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rmenurse

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Reply 2 on: Mar 6, 2021
Thanks for the timely response, appreciate it

patma1981

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Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

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