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An erternal buyer has offered to supply the parts to the Assembiy divison for ss so each. The Machining department is womied about having excess
An erternal buyer has offered to supply the parts to the Assembiy divison for ss so each. The Machining department is womied about having excess capacity if the Assembly division accepts this offer, as the Machining department can only sell 400,000 parts to its external oustomers. Required: Can the Machining department match the 55.50 price and still show a net profit for their sales to the Assembly division? If the fixed costs are unable to be changed in total, should the Machining department match the 55.50 price? Show your calculations on your separately-submitted workpaper
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