Recent Posts • Latest Topics • Unanswered Questions

Sportswear Ltd. manufactures socks. The Athletic Division sells its socks for $6 a pair to ...

dxpayne

wrote...

Go to Answer

Posts: 930

Rep:

6 years ago

Sportswear Ltd. manufactures socks. The Athletic Division sells its socks for $6 a pair to ...

Sportswear Ltd. manufactures socks. The Athletic Division sells its socks for $6 a pair to outsiders.
Socks have manufacturing variable and fixed costs of $2.50 and $1.50, respectively. The division's total fixed manufacturing costs are $105,000 at the normal volume of 70,000 units.

The European Division has offered to buy 15,000 socks at the full cost of $4. The Athletic Division
has excess capacity and the 15,000 units can be produced without interfering with the current outside
sales of 70,000. The 85,000 volume is within the division's relevant operating range.

Explain whether the Athletic Division should accept the offer.

Textbook

Cost Accounting: A Managerial Emphasis, Canadian Edition

Edition: 7^th

Authors: Horngren, Datar, Rajan, Beaubien

Read 87 times

2 Replies

Report

Replies

Answer verified by a subject expert

btpsand

wrote...

Related Topics

dxpayne Author

wrote...

5 years ago

Beauty, thank you!

Report

New Topic

Quick Reply

Explore

Post your homework questions and get free online help from our incredible volunteers

738 People Browsing

119 Signed Up Today

Start New Topic Take the Tour CoursesNew Study Tools Topics Trending Browse by Textbook

Live Chat

AJAX Chat © blueimp.net Integrated with SMF

Related Images

217

1112

Your Opinion

Previous poll results: Should Ph.D.'s be addressed as doctors?

Bonobos, Chimpanzees, and the 98% DNA Link

The Toxic Skin and Fungi Defense

Courses by Biology Forums

Strange Ingredients Lurking in Doritos Chips

It's sore throat season, why does my mucus have red spots?

Ready to ask a question on Biology Forums? Try it out

Join Our Community

Biology Forums - Study Force is a free online homework help service catered towards college and high school students. Get homework help and answers to your toughest questions in biology, chemistry, physics, mathematics, engineering, accounting, business, humanities, and more. Master your assignments quickly with thousands of step-by-step solutions to countless textbook questions asked and answered by our members. If we don't have your question, don't worry. You can ask any homework question and get expert homework help in as little as two hours.

Our extensive online study community is made up of college and high school students, teachers, professors, parents and subject enthusiasts who contribute to our vast collection of study resources: textbook solutions, study guides, practice tests, practice problems, lecture notes, equation sheets and more. With our help, your homework will never be the same!

Join for free today

How is Biology Forums - Study Force different than tutoring?

Home Search Q & A Board Gallery Resource Library Blog Dictionary Chat	Quick Links Start a Topic Latest Topics Unanswered Questions Courses Study Tools Browse by Textbook	Social Facebook YouTube Community Stats Who's Online Trending Staff	Help About Us Take the Tour Study Tips Posting Guidelines Terms and Policies Contact Us
Biology Forums - Study Force © 2010-2024 \| Powered by SMF \| SMF © 2015, Simple Machines \| Sitemap Biology-Forums.com is not affiliated with any publisher. Book covers, title and author names appear for reference only.