Division A, which is operating at capacity, produces a component that currently sells in a competitive market for $41 per unit. At the current level of production, the fixed cost of producing this component is $8 per unit and the variable cost is $16 per unit. Division B would like to purchase this component from Division A. 

What is the price that Division A should charge Division B for this component?

Answer rating: 100% (QA)

To determine the price that Division A should charge Division B for the component we first need to c... View the full answer