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Alpha and Beta are divisions within the same company. The managers of both divisions are evaluated based on their own division's return on investment (ROI).

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Alpha and Beta are divisions within the same company. The managers of both divisions are evaluated based on their own division's return on investment (ROI). Assume the following information relative to the two divisions Case 2 Alpha Division: Capacity in units Number of units now being sold 58,800 283,00 103,000 204,000 58,000 283,000 78,00 284,880 $ 103 41 66$ 44 to outside customers Selling price per unit to outside customers $ 43 28 $ 29 $9$ 23$ 4 Number of units needed annually 9,e00 71,e0e 18,eee 6e,eee s 66 Variable costs per unit Fixed costs per unit (based on 19 43 28 capacity) Beta Division: Purchase price now being paid to an outside supplier $ 94 $ 39 $ 66 Before any purchase discount. K Prev 4of5 4 of 5 Next>

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