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Dion A makes a part with the following characteristics Production capacity in units 32,900 units Selling price to outside customers $ 22 Variable cost per
Dion A makes a part with the following characteristics Production capacity in units 32,900 units Selling price to outside customers $ 22 Variable cost per unit $ 18 Total Fixed costs $ 103,400 Division 8. another division of the same company, would like to purchase 15.200 units of the part each period from Division A. Division is now being het burts from an ou of $20 each Suppose that Division A is operating at capacity and can tell all of its output to outside customers at ts usual selling price. It wision A agrees to set the parts to 120 as a whole will be Mulppee Choice o better om by 530400 each period, O warta oft by $60.800 esch period. one off oy $90.400 schod o bo no charge muna anus or una company sa nie . Division B is now purchasing these parts from an outside supplier at a price Division A agrees to sell the parts to Division B at $20 per unit, the company
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