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In each of the cases below, assume that Division X has a product that can be sold either to outside customers or to Division Y
In each of the cases below, assume that Division X has a product that can be sold either to outside customers or to Division Y of the same company for use in its production process. The managers of the divisions are evaluated based on their divisional profits DIvIsIon X Capacity in units Number of unlts belng sold to outside customers Selling price per unlt to outside customens Variable costs per unit Fixed costs per unit (based on capacity) 09.000 09.000 57 28 106.000 84.000 26 16 DivIsIon Y Number of units needed for production Purchase price per unit now being paid to an outside supplier 22,000 49 22,000 32 Required information 5.00 points
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