The Newton Company has two divisions: Hamilton and Jasper. The Hamilton Division has a total cost of

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The Newton Company has two divisions: Hamilton and Jasper. The Hamilton Division has a total cost of $30 per unit for its product, of which $20 is fixed. The Hamilton Division is at full capacity. The Jasper Division would like to purchase 20,000 units from Hamilton but thinks that the $35 price Hamilton typically charges outside customers is too high.

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Calculate the price at which the Hamilton Division should sell the units to the Jasper Division such that Hamilton will not incur additional losses.

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Managerial Accounting A Focus on Ethical Decision Making

ISBN: 978-0324663853

5th edition

Authors: Steve Jackson, Roby Sawyers, Greg Jenkins

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