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KG The following informetion applies to the questions displayed below in each of the cases below, assume that DivisIon X has a product that can
KG The following informetion applies to the questions displayed below in each of the cases below, assume that DivisIon X has a product that can be sold elther 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 thetr divisional profits Case DiMsIon X Copacity in units Number of units being sold to outside customers Selling price per unit to outside customers Variable costs per unit Fixed costs per unlt (based on capacity 92.000 92.000 $56 $24 $9 95.000 62,000 $31 $17 $4 Division Y Number of units needed for production Purchase price per unit now being paid to an 16.00016,000 outside supplier $47 $34 10. Requirement 1
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