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Solomon Company has two divisions, A and B . Division A manufactures 6 , 6 0 0 units of product per month. The cost per
Solomon Company has two divisions, A and B Division A manufactures units of product per month. The cost per unit is calculated as follows. Division B uses the product created by Division A No outside market for Division As product exists. The fixed costs incurred by Division A are allocated using headquarterslevel facilitysustaining costs. The manager of Division A suggests that the product be transferred to Division B at a price of at least $ per unit. The manager of Division argues that the same product can be purchased from another company for $ per unit and requests permission to do so Required How much would Solomon gain or lose per unit if Division B were to purchase the product from the outside company for $ per unit? Note: Round your answer to decimal ploces. is it in the best interest of Solomon Company for Division B to purchase the product from an outside company? table Solomon's gain or lossa Should Solomon purchase the product from outside?
Solomon Company has two divisions, A and B Division A manufactures units of product per month. The cost per unit is calculated as follows.
Division B uses the product created by Division A No outside market for Division As product exists. The fixed costs incurred by Division A are allocated using headquarterslevel facilitysustaining costs. The manager of Division A suggests that the product be transferred to Division B at a price of at least $ per unit. The manager of Division argues that the same product can be purchased from another company for $ per unit and requests permission to do so
Required
How much would Solomon gain or lose per unit if Division B were to purchase the product from the outside company for $ per unit?
Note: Round your answer to decimal ploces.
is it in the best interest of Solomon Company for Division B to purchase the product from an outside company?
table Solomon's gain or lossa Should Solomon purchase the product from outside?
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