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Fyodor Corporation has a Parts Division that does work for other Divisions in the company as well as for outside customers. The company's Machine Division

Fyodor Corporation has a Parts Division that does work for other Divisions in the company as well as for outside customers. The company's Machine Division has asked the Parts Division to provide it with 4,400 special parts each year. The special parts would require $13 per unit in variable production costs. The Machine Division has a bid from an outside supplier for the special parts at $20.40 per unit. In order to have time and space to produce the special part, the Parts Division would have to cut back production of another part-the QR4 that it presently is producing. The QR4 sells for $24 per unit, and requires $12 per unit in variable production costs. Packaging and shipping

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