Question: Materials$ 2 4 0 , 0 0 0 $ 5 0 Direct labor 1 1 5 , 2 0 0 2 4 Other costs varying

Materials$ 240,000$ 50Direct labor115,20024Other costs varying with output76,80016Fixed costs (do not vary with output)288,00060Totals$ 720,000$ 150
Required:
If you are the manager of the Western Division, what unit cost would you ask the Eastern Division to pay?
If you are the manager of the Eastern Division, what unit cost would you argue you should pay?
What unit cost would you recommend for a sale of units from the Western Division to the Eastern Division

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