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Dalin Inc. has two divisions: the Liquid Division that manufactures chocolate and sells the liquid both internally and externally; and the Bar Division that manufactures
Dalin Inc. has two divisions: the Liquid Division that manufactures chocolate and sells the liquid both internally and externally; and the Bar Division that manufactures candy bars. The Bar Division currently purchases liquid chocolate from the Liquid Division for $6 a gallon, the same price the Liquid Division charges to outside customers. The Bar Division recently received a bid from the Sly Company to provide liquid chocolate at a price of $4.50 a gallon. The Liquid Division does not want to meet the price, saying it will cost them money because their costs are $5 per gallon. The Liquid Division would prefer to sell their entire production of liquid product to external customers as there is excess demand for their high quality liquid
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