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Your Division makes wheels which can either be sold to outside customers or transferred internally to That Division. If the Your Division sells wheels to
Your Division makes wheels which can either be sold to outside customers or transferred internally to That Division. If the Your Division sells wheels to the That Division, it can avoid $2 per wheel in sales commissions. What is the maximum price per wheel That Division should be willing to pay Your Division?
Capacity 12,000 wheels
Customer Demand 12,000 wheels
Selling price per wheel $45
Variable cost per wheel $30
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