Durham Parts (DP) makes a variety of products. It is organized in two divisions, Eastern and Westem. The managers for each division are paid, in part, based on the financial performance of their divisions. The Western Division normally sells to outside customers but, on occasion, also sells to the Eastem Division. When it does, corporate policy states that the price must be cost plus 25 percent to ensure a "Tair" return to the selling division. Westem recelved an order from Eastern for 1,200 units. Western's planned output for the year had been 4,800 units before Eastem's order. Westem's capacity is 6,000 units per year. The costs for producing those 4,800 unis follow Required: a. If you are the manager of the Western Division, what unit cost would you ask the Eastern Division to pay? b. If you are the manager of the Eastern Division, what unit cost would you argue you should pay? c. What unit cost would you recommend for a sale of units from the Western Division to the Eastem Division? Complete this question by entering your answers in the tabs below. If you are the manager of the Westem Division, what unit cost would you ask the Eastem Dlvision to pay? Fote: Do not round intermediate calcuitations. Round your final answer to 2 decimal places. Durham Parts (DP) makes a variety of products. It is organized in two divisions, Eastern and Westem. The managers for each division are paid, in part, based on the financial performance of their divisions. The Western Division normally sells to outside customers but, on occasion, also sells to the Eastem Division. When it does, corporate policy states that the price must be cost plus 25 percent to ensure a "Tair" return to the selling division. Westem recelved an order from Eastern for 1,200 units. Western's planned output for the year had been 4,800 units before Eastem's order. Westem's capacity is 6,000 units per year. The costs for producing those 4,800 unis follow Required: a. If you are the manager of the Western Division, what unit cost would you ask the Eastern Division to pay? b. If you are the manager of the Eastern Division, what unit cost would you argue you should pay? c. What unit cost would you recommend for a sale of units from the Western Division to the Eastem Division? Complete this question by entering your answers in the tabs below. If you are the manager of the Westem Division, what unit cost would you ask the Eastem Dlvision to pay? Fote: Do not round intermediate calcuitations. Round your final answer to 2 decimal places
