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Division A of Huskie, Inc. has operating data as follows: Capacity 20,000 units Selling price $80 per unit Variable costs $35 per unit Fixed costs
Division A of Huskie, Inc. has operating data as follows:
Capacity | 20,000 units |
Selling price | $80 per unit |
Variable costs | $35 per unit |
Fixed costs | $20 per unit |
Division B wants to purchase units from Division A. If Division A agrees to sell units to Division B, A's variable costs will be $5 less per unit. If Division A has capacity available to meet B's requirements, what is the minimum price it should charge?
A. | $40 | |
B. | $30 | |
C. | $75 | |
D. | $60 |
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