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Given the following information for Camping Division: Selling price to outside customers $ 45 Variable cost per unit $ 27 Total fixed costs $ 600,000
Given the following information for Camping Division:
Selling price to outside customers | $ | 45 | |
Variable cost per unit | $ | 27 | |
Total fixed costs | $ | 600,000 | |
Capacity in units | 30,000 | ||
The Lantern Division would like to purchase internally from the Camping Division. The Lantern Division now purchases 5,700 units each period from outside suppliers at $44 per unit. The Camping Division has ample excess capacity to handle all of the Lantern Division's needs. What is the lowest price that Camping Division could accept?
$45.
$44.
$47.
$27.
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