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Brother and Sister are divisions of Parent company. The managers of both divisions are evaluated based on their own division's performance. Currently Brother makes a
Brother and Sister are divisions of Parent company. The managers of both divisions are evaluated based on their own division's performance. Currently Brother makes a carbon fiber rim that Sister uses in their assembly of premium racing bicycles. Brother has maximum capacity of 200,000 units. They are currently selling 170,000 to outside customers for $400 each. The variable costs of each rim are $320. Sister is currently paying $385 from an outside vendor for the rims they use. Sister would like to inquire about procuring rims from Brother. Sister needs 100,000 rims each year. The order is an all or none order. What is the minimum price Brother will accept for this order
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