ales: 80,000 units @ $60 per unit 145,000 units @ $115 per unit Expenses: Variable: 80,000 units 144 per unit 145,000 units 190 per unit GPS Systems Division $4,800,000 $4,800,000 $(3,520,000) Communication Systems Division 250,000 $(3,770,000) $1,030,000 $16,675,000 $16,675,000 $(13,050,000) (550,000) Total $(13,600,000) $3,075,000 $4,800,000 16,675,000 $21,475,000 Fixed Total expenses Operating income $60 of the $90 per unit represents materials costs, and the remaining $30 per unit represents other variable conversion expenses incurred within the Communication Systems Division $(3,520,000) (13,050,000) (800,000) $(17,370,000) $4,105,000 The GPS Systems Division is presently producing 80,000 units out of a total capacity of 150,000 units. Materials used in producing the Communication Systems Division's product are currently purchased from outside suppliers at a price of $60 per unit. The GPS Systems Division is able to produce the materials used by the Communication Systems Division at a variable cost of $44 per unit. Except for the possible transfer of materials between divisions, no changes are expected in sales and expenses

ales: 80,000 units @ $60 per unit 145,000 units @ $115 per unit Expenses: Variable: 80,000 units 144 per unit 145,000 units 190 per unit GPS Systems Division $4,800,000 $4,800,000 $(3,520,000) Communication Systems Division 250,000 $(3,770,000) $1,030,000 $16,675,000 $16,675,000 $(13,050,000) (550,000) Total $(13,600,000) $3,075,000 $4,800,000 16,675,000 $21,475,000 Fixed Total expenses Operating income $60 of the $90 per unit represents materials costs, and the remaining $30 per unit represents other variable conversion expenses incurred within the Communication Systems Division $(3,520,000) (13,050,000) (800,000) $(17,370,000) $4,105,000 The GPS Systems Division is presently producing 80,000 units out of a total capacity of 150,000 units. Materials used in producing the Communication Systems Division's product are currently purchased from outside suppliers at a price of $60 per unit. The GPS Systems Division is able to produce the materials used by the Communication Systems Division at a variable cost of $44 per unit. Except for the possible transfer of materials between divisions, no changes are expected in sales and expenses

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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