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Camper's Inc. manufactures camping supplies, including 20,000 sleeping bags, which are used with many other company products and are also sold directly to retailers for
Camper's Inc. manufactures camping supplies, including 20,000 sleeping bags, which are used with many other company products and are also sold directly to retailers for $38 per bag. At the current level of production, the cost per unit to produce the sleeping bags consists of: Management was recently approached by Bedlam Company which makes a similar quality sleeping bag and is willing to sell their sleeping bag to Camper's Inc. Assuming that Camper's fixed costs will remain unchanged if the bags are purchased from Bedlam, in order to operate more profitably by buying the bags rather than manufacturing them, Camper's Inc. must negotiate a price per unit from Bedlam that is less than
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