ACCT 323 Final Exam Review Package Corrections

Question #22: The question should read:

“ABC Electronics has two divisions, Microchips division and Motherboard division. The Microchips division makes only one product, the DC1 chip. The Motherboard division purchases chips from the Microchips division to produce motherboards. The variable cost incurred to make the chip is $20/unit. The market price for the DC1 chips is $32/unit. The microchips division currently has no excess production capacity.”