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You have been provided with the following information for Division X of a decentralized company: Selling price Variable cost per unit $ 90 66
You have been provided with the following information for Division X of a decentralized company: Selling price Variable cost per unit $ 90 66 Fixed cost per unit 20 22,500 25,000 Sales volume (units) Capacity (units) Division Y of the same company would like to purchase all of its units internally. Division Y needs 6,000 units each period and currently pays $84 per unit to an outside firm. What is the lowest price that Division X could accept from Division Y? (Assume that Division Y wants to use a sole supplier and will not purchase less than 6,000 from a supplier.) Multiple Choice $90 $84 $80 $66
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