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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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