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The Hermione and Ron Divisions are part of the same company. Currently the Ron Division buys a part from Hermione for $449. Ron can buy

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The Hermione and Ron Divisions are part of the same company. Currently the Ron Division buys a part from Hermione for $449. Ron can buy the part from an outside supplier for $448. The per-unit cost data for the Hermione Division is as follows: Variable manufacturing cost Fixed manufacturing overhead $376 42 If Hermione ceases to produce the parts for Ron, it will be able to avoid one third of the fixed manufacturing overhead. The Hermione Division has excess capacity but no alternative uses for its facilities. From the standpoint of the company as a whole, should Ron continue to buy from Hermione or start to buy from the outside supplier? Ron should buy from Hermione Division because the company's profit would be $72 per unit larger. Ron should buy from Hermione Division because the company's profit would be $58 per unit larger. Ron should buy from Hermione Division because the company's profit would be $30 per unit larger. Ron should buy from an outside supplier

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