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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

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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 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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