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Swallen Company has two divisions, Division X and Division Y. Division X has a production capacity of 5,000 units of Part G20
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Answer #1

Outside sales lost = 4,400 normal sales - (5,000 units produced - 800 division transfer) = 200 units

Contribution lost = 200 * 56 = 11,200

Opportunity cost distributed over 800 units = 11,200/800

= 14 per unit

Answer is:

$14 per unit


answered by: ANURANJAN SARSAM
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