Question: Refer to problem 10-A2, number 1 only. Suppose the Geneva division could modify the component at an additional variable cost of CHF 25 per unit
Refer to problem 10-A2, number 1 only. Suppose the Geneva division could modify the component at an additional variable cost of CHF 25 per unit and sell the 3,000 units to other customers for CHF 330. Then, would the entire company benefit if the Lucerne division purchased the 3,000 components from outsiders at CHF 300 per unit?
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The company as a whole would benefit because the CHF60000 disadvantage of purchasing ... View full answer
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