subject
Business, 24.11.2020 21:10 carog24

Stavos Company’s Screen Division manufactures a standard screen for high-definition televisions (HDTVs). The cost per screen is: Variable cost per screen $ 118
Fixed cost per screen 34 *
Total cost per screen $ 152
*Based on a capacity of 820,000 screens per year.

Part of the Screen Division’s output is sold to outside manufacturers of HDTVs and part is sold to Stavos Company’s Quark Division, which produces an HDTV under its own name. The Screen Division charges $194 per screen for all sales.

The net operating income associated with the Quark Division’s HDTV is computed as follows:

Selling price per unit $ 584
Variable cost per unit:
Cost of the screen $ 194
Variable cost of electronic parts 234
Total variable cost 428
Contribution margin 156
Fixed costs per unit 82 *
Net operating income per unit $ 74
*Based on a capacity of 150,000 units per year.

The Quark Division has an order from an overseas source for 5,300 HDTVs. The overseas source wants to pay only $408 per unit.

Required:

1. Assume both the Screen Division and the Quark Division have idle capacity. Under these conditions, what is the financial advantage (disadvantage) for the company as a whole (on a per unit basis) if the Quark Division rejects the $408 price?

2. Assume the Quark Division has idle capacity but that the Screen Division is operating at capacity and could sell all of its screens to outside manufacturers. Under these conditions, what is the financial advantage (disadvantage) for the company as a whole (on a per unit basis) if the Quark Division accepts the $408 unit price?

ansver
Answers: 2

Another question on Business

question
Business, 23.06.2019 02:50
Camping gear, inc. had 500 units of inventory on hand at the end of the year. these were recorded at a cost of $ 13 each using the lastminusin, firstminusout (lifo) method. the current replacement cost is $ 9 per unit. the selling price charged by camping gear, inc. for each finished product is $ 14. as a result of recording the adjusting entry as per the rule, the gross profit will
Answers: 2
question
Business, 23.06.2019 08:00
Wriston company is preparing its cash budget for the upcoming month. the beginning cash balance for the month is expected to be $15,000. budgeted cash disbursements are $72,500, while budgeted cash receipts are $89,600. wriston company wants to have an ending cash balance of $30,000. the excess (deficiency) of cash available over disbursements for the month would be
Answers: 2
question
Business, 24.06.2019 01:00
Helen holds 1,000 shares of fizbo inc. stock that she purchased 11 months ago. the stock has done very well and has appreciated $20/share since helen bought the stock. when sold, the stock will be taxed at capital gains rates (the long-term rate is 15 percent and the short-term rate is the taxpayer's marginal tax rate). ignore the time value of money.
Answers: 3
question
Business, 24.06.2019 07:50
What part of outlining your company involves defining ways to reach your  pre-decided  future goals? a company’s  (blank) involves defining ways to reach your pre-decided future goals.its not " business plan " tried it lol
Answers: 3
You know the right answer?
Stavos Company’s Screen Division manufactures a standard screen for high-definition televisions (HDT...
Questions
Questions on the website: 13722360