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Author Question: The Microchip Division of Silicon Computers produces computer chips that are sold to the Personal ... (Read 71 times)

mikaylakyoung

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on: Mar 6, 2021

Question 1

Dual pricing is not widely used. Explain its disadvantages.

Question 2

The Microchip Division of Silicon Computers produces computer chips that are sold to the Personal Computer Division and to outsiders. Operating data for the Microchip Division for 20X5 are as follows: 

​Internal SalesExternal Sales
Sales:​​
   300,000 chips at $10$3,000,000​
   200,000 chips at $12​$2,400,000
Variable expenses at $41,200,000800,000
Contribution margin$1,800,000$1,600,000
Fixed cost (allocated in units)1,500,0001,000,000
Operating income$ 300,000$ 600,000

The Personal Computer Division has just received an offer from an outside supplier to furnish chips at $8.90 each. The manager of Microchip Division is not willing to meet the $8.90 price. She argues that it costs her $9.00 to produce and sell each chip. Sales to outside customers are at a maximum of 200,000 chips. 

Required: 
a.  Verify the Microchip Division's $9.00 unit cost figure. 
b.  Should the Microchip Division meet the outside price of $8.90? Explain. 
c.  Could the $8.60 price be met and still show a profit for the Microchip Division sales to the Personal Computer Division? Show computations.
Horngren's Cost Accounting: A Managerial Emphasis ¦ Datar, Rajan ¦ 16th Edition
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Marked as best answer by mikaylakyoung on Mar 6, 2021

mtmmmmmk

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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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mikaylakyoung

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Reply 2 on: Mar 6, 2021
YES! Correct, THANKS for helping me on my review

kusterl

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

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