The Kelly - Elia as a separate of Kelly - Elias (Click to vi Read the requi Requirement component from take actions th Begin by comp Less: More info Part 1 of 8 O Points: Xe of Division C has in the past always purchased its requirement of a particular tractor-engine component from division A. However, when informed that division A is increasing its selling price to $145, division C's manager decides to purchase the engine component from external suppliers. Division C can purchase the component for $125 per unit in the open market. Division A insists that, because of the recent installation of some highly specialized equipment and the resulting high depreciation charges, it will not be able to earn an adequate return on its investment unless it raises its price. Division A's manager appeals to top management of Kelly - Elias for support in the dispute with division C and supplies the following operating data: C's annual purchases of the tractor-engine component A's variable cost per unit of the tractor-engine component A's fixed cost per unit of the tractor-engine component 2,000 units $115 $20 mpany divisio sing pa Net cost (ben Print Done