Division A has an expected annual production of 50,000 units and fixed manufacturing costs of P300,000. The full absorption cost per unit based on the expected annual production is shown below:....

What would be the total contribution to profit to the company as a whole for 10,000 units transferred to Division B and later sold to outside customers at P21 per unit.

Extracted text: Division A has an expected annual production of 50,000 units and fixed manufacturing costs of P300,000. The full absorption cost per unit based on the expected annual production is shown below:. Variable cost Fixed costs Full absorption cost P6 9. P12 Division A has idle capacity and Division B is considering buying 10,000 units from Divsion A to be processed further and to sell at P21 per unit. Division B would incur additional processing costs and selling costs of P6 and P5 per unit, respectively.