Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. athos and porthos are divisions of dumas, inc., op

Athos and Porthos are divisions of Dumas, Inc., operating as profit centers. Both are profitable. One...

60.1K

Verified Solution

Question

Accounting

Athos and Porthos are divisions of Dumas, Inc., operating asprofit centers. Both are profitable. One of the products producedby Athos is A62, which normally sells for $180/unit. Cost is$125/unit (40% variable). Porthos is planning a new product, and istaking bids on one of the subassemblies. A62 would be appropriatefor this subassembly with some modification.

a) Discuss the factors Athos should consider when submitting abid.

b) If Athos does not submit the low bid, might Porthos stillbenefit from accepting their bid? Discuss briefly.

Answer & Explanation Solved by verified expert
3.8 Ratings (464 Votes)
Selling Price of A62 equals to 180 per unit The unit cost price of producing A62 is 125 out of which 40 is variable component ie 75 is fixed costs per unit and 50 is variable costs per unit a Major factors should be considered when submitting a bid for new product launch by Porthos Initial capital required to launch new product Launching the new product require sourcing of capital from various instruments including Equity and debt funds to buy assets and machinery to produce newly launched product Sourcing of capital required Athos should consider sourcing of funds when    See Answer
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

Calculate the # of ATP produced from 16C FFA?

Medical Sciences
Q

How does Puccini’s opera Turandot portray China and the Chinese people? Be as specific as you...

Psychology
Q

Put It in Writing Activity: Imagine that you have just been hired as the principal of...

Psychology
Q

Use the Student's t distribution to find tc for a 0.95 confidence level when the sample is...

Basic Math
Q

Task 1 You have just started a new job and your employer has enrolled you in ANZ...

Finance
Q

B s SC BIOL1001 P Biology II E

Biology
Q

A uniform magnetic field B Bot where Bo is a positive constant cylindrical volume of...

Physics
Q

A person with a mass m stands in contact against a rough wall of cylindrical...

Physics
Q

1 point Find the quotient and remainder using long division for 2x 14x 7x 33...

Basic Math
Q

13 10pts Find the intercepts and asymptotes and then sketch a graph of rational function...

Calculus
Q

Income statements and balance sheets follow for Microsoft Corporation. Refer to these financial statements to...

Accounting
Q

7:03 = 2. Fat Foods, Inc. telephoned four orders to Lean Machine Company to purchase...

Accounting