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#30 help i think its 58 just making sure:) Assume a company has two divisions, Division and Division D. Division C has provided the following
#30 help
i think its 58 just making sure:)
Assume a company has two divisions, Division and Division D. Division C has provided the following information regarding the one product that it manufactures and sells on the outside market: Selling price per unit (on the outside market) Variable cost per unit Fixed costs per unit (based on capacity) Capacity in units $ 60 $ 44 $ 8 20,000 Division D could use Division C's product as a component part in the manufacture of 4,000 units of its own newly designed product. Division D has received a quote of $58 from an outside supplier for a component part that is comparable to the one that Division makes if the company's divisional managers are evaluated based on their division's profits and Division C is currently selling 15,000 units on the outside market, what is Division D's highest acceptable transfer price if it were to buy 4,000 units from Division C? Multiple Choice $48 $52 O 544 $58 Step by Step Solution
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