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Peppertree Company has two divisions, East and West. Division East manufactures a component that Division West uses. The variable cost to produce this component is
Peppertree Company has two divisions, East and West. Division East manufactures a component that Division West uses. The variable cost to produce this component is $1.47 per unit; full cost is $2.09. The component sells on the open market for $4.99. Assuming Division East has excess capacity, what is the lowest price Division East will accept for the component? What is the highest price that Division West will pay for it? Note: Enter your answers in 2 decimal places. Garfield Corporation expects to sell 1,200 units of its pet beds in March and 700 units in April. Each unit sells for $120. Garfield's ending inventory policy is 20 percent of the following month's sales. Garfield pays its supplier $40 per unit. Compute Garfield's budgeted purchases of pet beds for March
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