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I need the answer as soon as possible 7. Division-A makes a part that it sells to customers outside of the company. Data concerning this
I need the answer as soon as possible
7. Division-A makes a part that it sells to customers outside of the company. Data concerning this part appear below: Selling price to outside customers $75 Variable cost per unit $50 Total fixed costs $400,000 Capacity in units 25,000 Division-B of the same company would like to use the part manufactured by Division-A in one of its products. Division-B currently purchases a similar part made by an outside company for $70 per unit and would substitute the part made by Division-A. Division-B requires 5,000 units of the part each period. Division-A can already sell all of the units it can produce on the outside market. What should be the lowest acceptable transfer price from the perspective of Division-A (3 points)Step by Step Solution
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