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iven the following data for Division X: Selling price $ 43 Variable cost per unit $ 25.5 Fixed cost - Total $ 80000 Capacity (units)
iven the following data for Division X:
Selling price | $ 43 |
Variable cost per unit | $ 25.5 |
Fixed cost - Total | $ 80000 |
Capacity (units) | 82500 |
Division Y would like to purchase 24000 units each period from Division X. Division X has ample excess capacity to handle all of Division Y's needs. Division Y now purchases from an outside supplier at a price of $29. If Division X refuses to accept an $27 price internally, the company, as a whole, will be worse off by:
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