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stion 24 yet wered Clariton Corporation has two divisions, Kissimmee and Grant, and evaluates management on the basis of return on investment, Kissimmee currently makes
stion 24 yet wered Clariton Corporation has two divisions, Kissimmee and Grant, and evaluates management on the basis of return on investment, Kissimmee currently makes a part that it sells to both Grant and outsiders Selected data follow. ints out of 25 Selling price to Grant Variable cost Fixed costs $25 Flag question 18 80,000 Kissimmee is seeking an increase in its selling price to $28 per unit because of rising costs. Grant can obtain comparable units from an outside supplier for $26; however, if Grant uses the supplier, Kissimmee will have idle capacity because of an inability to increase sales to outsiders. From the perspective of Clariton Corporation Select one: O a Kissimmee should continue to do business with Grant and charge $2B per unit Ob. Kissimmee should continue to do business with Grant and charge $25 per unit Oc Kissimmee should continue to do business with Grant because Kissimmee's variable cost per unit is only 518 O d. Grant should do business with the outside supplier Oe. Grant should split its business between Kissimmee and the outside supplier
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