Hello sir
In this question part b)
In working s (2) internal sales
Div B: 20000*65
How do we get 20000??
In workings (3)
Material costs
Div A: 60000*265 +20000*200
How do we get 60000 and 20000??
TIA
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Dec 2011 bath co
6y ago#1For workings (2), Division B Is able to produce 200,000 sets of fittings.
The maximum external demand is 180,000 sets, which leaves 20,000 sets available to sell to Division A.
For workings (3), Division A produces 80,000 baths and therefore needs 80,000 sets of fittings. They will get 20,000 from Division B (as per workings (2) ) and the remaining 60,000 externally.
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