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Genus Products, Incorporated, has a Relay Division that manufactures and sells a number of products, including a standard relay that could be used by another
Genus Products, Incorporated, has a Relay Division that manufactures and sells a number of products, including a standard relay that could be used by another division in the company, the Electronics Division, in one of its products. Data concerning that relay appear below: Capacity in units Selling price to outside customers Variable cost per unit Fixed cost per unit (based on capacity) 50, 000 $ 62 $ 20 $ 29 The Electronics Division is currently purchasing 7,000 of these relays per year from an overseas supplier at a cost of $59 per relay. Assume that the Relay Division is selling all of the relays it can produce to outside customers. Also assume that $4 in variable expenses can be avoided
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