2 TCO 8 The San Jose Manufacturing Company has two

2 TCO 8 The San Jose Manufacturing Company has two divisions in Kansasthe Holton Division and the Derby Division Currently Derby buys a part 10000 units from Holton for 16 per unit Holton has purchased new equipment and wants to increase the price to Derby to 18 per unit The controller of Derby claims that she cannot afford to go that high as it will decrease the divisions profit to near zero Derby can buy the part from an outside supplier for 16 per unit The incremental costs per unit that San