Question: Division A, which is operating at capacity, produces a component that currently sells in a competitive market for $38 per unit. At the current

Division A, which is operating at capacity, produces a component that currently

Division A, which is operating at capacity, produces a component that currently sells in a competitive market for $38 per unit. At the current level of production, the fixed cost of producing this component is $13 per unit and the variable cost is $11 per unit. Division B would like to purchase this component from Division A. The price that Division A should charge Division B for this component is: Multiple Choice $11 per unit. $24 per unit. $32 per unit. $38 per unit. $49 per unit.

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