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. * Division A has an expected...


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What would be the total contribution to profit to the company as a whole for 10,000 units<br>transferred to Division B and later sold to outside customers at P21 per unit. *<br>Division A has an expected annual production of 50,000 units and fixed manufacturing<br>costs of P300,000. The full absorption cost per unit based on the expected annual<br>production is shown below:<br>Variable cost<br>Fixed costs<br>Full absorption cost<br>P6|<br>6<br>P12<br>Division A has idle capacity and Division B is considering buying 10,000 units from<br>Divsion A to be processed further and to sell at P21 per unit. Division B would incur<br>additional processing costs and selling costs of P6 and P5 per unit, respectively.<br>P20,000<br>P40,000<br>(P20,000)<br>P80,000<br>

Extracted text: 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. * 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| 6 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. P20,000 P40,000 (P20,000) P80,000

Jun 10, 2022
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