Unformatted text preview: Among (192,000-76,800) =1,15,200 remaining units should be allocated to Peoria because Peoria's cost for both first 96,000 units and any additional upto 120,000 units is more profitable than Moline *Peoria's Operating Income after regular capacity is (15-3)=$12per unit *Moline's O.I. after regular capacity is (18.50-8.00)=$10.00per unit 4,704,000/64= 73,500 Units 2,265,600/48= 47,200 Units 15*96,000 = $1,440,000 3/ Moilne's first 76,800 Units are most profitable so among the So Moline gets 76,800 Units & Peoria gets 115,200 Units to produce...
View Full Document
- Fall '11
- Peoria, Total variable cost=, Moline