Question
Use the following to answer questions 19 and 20: Jazzy Company's Electronics Division produces hands-free audio devices.Their annual capacity is 100,000 units, the variable cost
Use the following to answer questions 19 and 20:
Jazzy Company's Electronics Division produces hands-free audio devices.Their annual capacity is 100,000 units, the variable cost per unit is $25, their fixed cost per unit at full capacity is $10, and their contribution margin per unit is $40.Jazzy Company's Video Division would like to purchase 20,000 units from the Electronics Division.The Video Division can purchase the same device from an outside supplier for $70 per unit.The Electronics Division is currently producing and selling all 100,000 units.
Question 19
1pts
What is the maximum transfer price per unit the Video Division is willing to pay?
$65
$35
$70
$75
Question 20
1pts
What is the lowest transfer price per unit the Electronics Division is willing to accept?
$35
$65
$75
$70
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