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Assume a company has two divisions Division and Division Division has provided the following information regarding the one product that maractures and sellis on the
Assume a company has two divisions Division and Division Division has provided the following information regarding the one product that maractures and sellis on the outside market Selling price per unit on the outside market Variable cost per unit Fixed costo per unit (based on capacity Capacity in units DO 60 $ 44 $ 20,000 Division E could use Division D's product as a component part in the manufacture of 4.000 unts of its own newly designed product Division has received a quote of $58 from an outside supplier for a component part that is comparable to that Division makes If the company's divisional managers are evaluated based on their division's profits and Division D is currently selling 15.000 units on the outside market whiskon D's lowest acceptable transfer price if were to sell 4000 units to Multiple Choice $50 544 $48 $52
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