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Do The Dubs division of fast Company produces wheels for 9 sol If The dubs divion of fast company could sell all of its the external market at The current external selling price, by how much would fast's total contribution margin increase. Te mainder is sold to the Hoon. The External selling price unit sales/ unit sales. E 400,000/1000 = 4000 sale External sales $ 400% 2000 $ 800.000 Total Actual $ 320,000 var mig var g & a total Actual $100.000 $ 380,000 cm Fived m4g Total actual $ 56,000 fixed 989 Total Actual $ 84,000 unit sales $ 240,000 OP. Profit 2000
Do The Dubs division of fast Company produces wheels for 9 sol If The dubs divion of fast company could sell all of its the external market at The current external selling price, by how much would fast's total contribution margin increase.
Te mainder is sold to the Hoon. The External selling price unit sales/ unit sales. E 400,000/1000 = 4000 sale External sales $ 400% 2000 $ 800.000 Total Actual $ 320,000 var mig var g & a total Actual $100.000 $ 380,000 cm Fived m4g Total actual $ 56,000 fixed 989 Total Actual $ 84,000 unit sales $ 240,000 OP. Profit 2000
2 contribution margin of dubs = $ 380,000 hoons division purchase $ 325x 1000 = $325,000 = 는 hoons profit it's purchases from External supplier = $ 400x1000 – $ 32 5000 - 75000, what would be the increase in toon division's total operating profits it fast company allows the Hoon division to purchese The wheels it needs from the outside supple Sales = $ 400 X 1000 = $ 400,000 purchase from external supplier $ 250 x 1000 = $ 250,000 = $ 400,000 - $ 250,000 => $1,50,000 4
2 By How much would bub's total Oparations profit change internal External $ 300,000 $ 600,000 $ 160000 $ 160,000 var mdg cm 11, 6000 sales total $ 900,000 $ 320,000 var gog $ 40,000 $ 60,000 $ 100,000 $ 100,000 $ 380,000 x 480,000 Fixed mto $24.000 /$ 32,000 1$ 84,000 Fixed 984$ 36,000 $ 48,000 2 80,000 OP. PokĩE $ |# 300,000 40,000 anit sals 1000 2500 tt 사 1500 additional fixed manufacturing Cost 60000 addition units Spoexternal cals Existing operating profit - profit after investment Operating.
.
$140,000 - $ 280,000 = 1407000 increase in profit
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