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John Moffat.
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kennigara
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Bath co question
part a) total group profit 10160
Part b) total group profit 11060
Variable cost of making fittings-20$
Variable cost of buying fittings–65$
extra variable cost of buying====45$Variable cost of making fittings—20$
external market price—————–80$
========================60extra cost if division A buys from division divison B 60-45=15$
dedcut b -a=900(15*60000 if it buys the reamining from outside supplier)
dear tutor is this the right approach for part b?
John Moffat
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I am not sure what you are asking me because you have got parts (a) and (b) correct and they are the only calculation parts (and presumably you have checked with the examiners answer).
kennigara
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