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an Q2:The Currently the Cage Division buys a part from the Nicholson Division for $82 per unit. The Nicholson Division wants to in the price

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an Q2:The Currently the Cage Division buys a part from the Nicholson Division for $82 per unit. The Nicholson Division wants to in the price of the part to $100 per unit. Cage Division can buy th part for $94 from an outside supplier. The cost data for the par obtained from the Nicholson Division is below: Nicholson and Cage Divisions are in the same comm $25.50 Direct materials . Direct labor 32.50 Variable indirect production 22.50 9.60 . Fixed indirect production If Nicholson does not provide the parts to Cage, it will save one-fourth of the fixed indirect production costs. The Nicholson Division has excess capacity but no alternative uses of the facilities. Required: ) From the standpoint of the company as a whole, should Cage Division continue to buy the part from Nich Division? B) From the standpoint of Cage Cage Division continue to buy the part from Nich Division only, should Division? holson

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