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Division A produces a part with the following characteristics: $3 Capacity in Units 50,000 units Selling Pnce per Unit $30 Vanable Costs per Unit $18
Division A produces a part with the following characteristics: $3 Capacity in Units 50,000 units Selling Pnce per Unit $30 Vanable Costs per Unit $18 Fixed Costs per Unit Division 8 another division in the company, would like to buy this part from Division A. Division B is presently purchasing the part from an outside source at $28 per unit. If Division A sells to Division B, 51 in variable costs can be avoider Suppose Division A is currently operating at capacity and can sell all of the units it produces on the outside market for its usual selling price. From the point of view of Division A any sales to Division B should be priced no lower than which of the following? O A $29. OB $27 C $28 OD S20
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