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Assume a situation where a mutually beneficial exchange can occur between two divisions of a large company. The selling division has extra capacity and is
Assume a situation where a mutually beneficial exchange can occur between two divisions of a large company. The "selling" division has extra capacity and is selling its products for $50 to outside customers. The unit variable cost for those units is $30. The "buying division is buying from outside suppliers for $48. Identify the range if mutually acceptable prices. Within this identified range, approximately what is your predicted agreed-upon price? Why?
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