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You have been provided with the following information for the Wool Division of a decentralized company: Selling price Variable cost per unit Fixed cost per
You have been provided with the following information for the Wool Division of a decentralized company: Selling price Variable cost per unit Fixed cost per unit Sales volume (units) Capacity (units) $ 65 $ 53 $ 52 62,500 65,000 The Blanket Division would like to purchase all of its units internally. The Blanket Division needs 6,000 units each period and currently pays $82 per unit to an outside firm. Assuming that the Blanket Division wants to use a sole supplier and will not purchase less than 6,000 from a supplier, what is the lowest price that Wool Division should accept from the Blanket Division? Multiple Choice $78. $65. O O $60. O $82
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