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Sandpiper Inc. has a division that manufactures a component that sells for $150 and has a variable cost of $30. Another division of the company
Sandpiper Inc. has a division that manufactures a component that sells for $150 and has a variable cost of $30. Another division of the company uses this component when assembling its product. It is currently purchasing this component from an outside company for $145. This division is considering purchasing the component internally. Which of the following is true if the selling division has NO idle capacity? Maximum price the buyer would pay is $145 A profitable deal can be struck between the divisions Minimum price the seller would take is $30 All of the choices are true
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