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How do i do this? Rundle Company has two divisions, A and B. Division A manufactures 6,700 units of product per month. The cost per
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Rundle Company has two divisions, A and B. Division A manufactures 6,700 units of product per month. The cost per unit is calculated as follows. $ 6.30 Variable costs Fixed costs 19.50 $25.80 Total cost Division B uses the product created by Division A. No outside market for Division A's product exists. The fixed costs incurred by Division A are allocated headquarters-level facility-sustaining costs. The manager of Division A suggests that the product be transferred to Division B at a price of at least $25.80 per unit. The manager of Division B argues that the same product can be purchased from another company for $20.00 per unit and requests permission to do so. Required a-1. How much would the division gain or lose if Division B were to purchase the product from the outside company for $20.00 per unit? (Round your answer to 2 decimal places.) a-2. Is it in the best interest of Rundle Company for Division B to purchase the product from an outside company? Answer is complete but not entirely correct. $ 91,790.00 - per unit Division's gain or loss loss 1 - Should Rundle purchase the product from outside? NoStep by Step Solution
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