Using the facts from Exercise 19-32, assume that Division B can sell
10,000 units outside the company for $215 per unit, with variable marketing
costs of $10. Should Division B sell outside or to Division A? Explain.
Problem Information
Outside price for materials ......................
150
Division A's annual purchases ...................
10000 units
Division B's variable costs per unit ..............
140
Division B's additional variable costs per unit ...
10
Division B's external sales price per unit ........
215
d ...................................................
1250000
Division B's capacity utilization ..................
1