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In each of the cases below, assume that Division X has product that can be sold either to outside customers or to Division Y of

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In each of the cases below, assume that Division X has 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. Capacity in units Number of units being sold to outside customers Selling price per unit to outside customers Variable costs par unit Fixed costs per unit (based on capacity) Number of units needed for production Purchase price per unit now being paid to an outside supplier Refer to the data in case A above. Assume in this case that $1 per unit in variable selling costs can be avowed on intracompany sales

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