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Division A makes a part with the following characteristics Production capacity in units selling price to outside customers Variable cost per unit Total fixed costs

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Division A makes a part with the following characteristics Production capacity in units selling price to outside customers Variable cost per unit Total fixed costs 29,500 units $23 $16 $106,200 Division B, another division of the same company, would like to purchase 19700 units of the part each period from Division A Division B is now purchasing these parts from an outside supplier at a price of $18 each. Suppose that Division A has ample idle capacity to handle all of Division D's to outside customers. if Division A refuses to accept the $18 price internally and Division B continues to buy from as a whole will be: needs without any increase in fixed costs and without cutting into sales the outside supplies the company

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