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Jefferson Motors, Inc., operates as a decentralized multidivision company. The Vadell division of Jefferson Motors purchases most of its airbags from the airbag division.

Jefferson Motors, Inc., operates as a decentralized multidivision company. The Vadell division of Jefferson Motors purchases most of its airbags from the airbag division. The airbag division's incremental cost for manufacturing the airbags is $130 per unit. The airbag division is currently working at 80% of capacity. The current market price of the airbags is $150 per unit.

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