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45. Division A of ABC Corp. sells 96,000 units of Part X to the outside market. Part X sells for Php12 each and has a
45. Division A of ABC Corp. sells 96,000 units of Part X to the outside market. Part X sells for Php12 each and has a variable cost per unit of Php8. Fixed cost per unit amounted to Php3. Division A has a capacity to produce 120,000 units per period. Division B currently purchases 15,000 units of Part X from Division A for Php12 each. Division B has been approached by an outside supplier that is willing to supply the parts needed. Assume that the outside supplier offered to supply each unit for Php10 each, which is correct? A. Division B profit will increase by Php15,000 B. ABC Corp profit will decrease by Php30,000 C. ABC Corp profit will decrease by Php60,000 D. Division A profit will decrease by Php15,000
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