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You have been provided with the following information for Division B of a company: Selling price Variable cost per unit Fixed cost per unit Sales
You have been provided with the following information for Division B of a company: Selling price Variable cost per unit Fixed cost per unit Sales volume (units) Capacity (units) $ 115 85 24 21,400 24,900 Division C of the same company would like to purchase all of its units internally. Division C needs 10,500 units each period and currently pays $109 per unit to an outside firm. What is the lowest price that Division B could accept from Division C? (Assume that Division C wants to use a sole supplier and will not purchase less than 10.500 from a supplier.) Multiple Choice $115. $109 $105 O
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