You have been provided with the following information for Division X of a decentralized company Selling price $ 95 Variable cost per unit 65 Fixed cost per unit 28 Sales volume (units) 22,900 Capacity (units) 25,200 Division Y of the same company would like to purchase all of its units internally D...

To find the lowest price that Division X could accept from Division Y we need to compare the opportu ...

You have been provided with the following information for Division X of a decentralized company: Selling price

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Question:

You have been provided with the following information for Division X of a decentralized company:

Selling price

Variable cost per unit

Fixed cost per unit

Sales volume (units)

22,900

Capacity (units)

25,200

Division Y of the same company would like to purchase all of its units internally. Division Y needs 6,900 units each period and currently pays $89 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 willnotpurchase less than 6,900 from a supplier.)

Posted Date: May 14, 2024 08:32 AM

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You have been provided with the following information for Division X of a decentralized company: Selling price

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To find the lowest price that Division X could accept from Division Y we need to compare the opportu... View the full answer

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