Pleasant Hills Properties is developing a golf course subdivision that includes 225 home lots; 100 l
Pleasant Hills Properties is developing a golf course subdivision that includes 225 home lots; 100 lots are golf course lots and will sell for $108,000 each; 125 are street frontage lots and will sell for $78,000. The developer acquired the land for $1,930,000 and spent another $1,530,000 on street and utilities improvement. Compute the amount of joint cost to be allocated to the golf course lots using value basis. (Round your intermediate calculation to one decimal place.) Multiple Choice o $1,873,080. $1,517,240 $1,819,960. $2,114,080. $1,640,040. Division P of Launch Corporation has the capacity for making 82,500 wheel sets per year and regularly sells 67,500 each year on the outside market. The regular sales price is $175 per wheel set, and the variable production cost per unit is $125. Division Q of Launch Corporation currently buys 37,500 wheel sets (of the kind made by Division P) yearly from an outside supplier at a price of $165 per wheel set. If Division Q were to buy the 37,500 wheel sets it needs annually from Division P at $147 per wheel set, the change in annual net operating income for the company as a whole, compared to what it is currently, would be: Multiple Choice $1,538,125 $675,000 $750,000 $1,500,000 O $75,000
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