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component for the Tesslo Company's Assembly Division. Both ter Division A also sells to outsiders at a selling price of $75 buys 600.000 units of
component for the Tesslo Company's Assembly Division. Both ter Division A also sells to outsiders at a selling price of $75 buys 600.000 units of a similar component per year 7. Division A produces a component for the divisions operate as a profit center. Division A also sells per component. The Assembly Division buys 600.000 unite from outside sources. The external purchase pric sources. The external purchase price is $73 as a result of a quantity dis as adequate capacity to supply the needs of the Assembly division. The following Division A has adequate capacity to supply the need data are for Division A: Direct material $30 per unit Direct labor $25 per unit Variable overhead $10 per unit Fixed overhead (based on a capacity of 5,000 units) $6 per unit The price range within which Division A would sell components to Assembly is: A. $71 to $73 B. $65 to $73 C. $71 to $75 D. $65 to $75
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