Division a of huskie, inc. has operating data as follows: capacity 20,000 units selling price $80 per unit variable costs $40 per unit fixed costs $20 per unit division b wants to purchase units from division a. if division a agrees to sell units to division b, a's variable costs will be $5 less per unit. if division a has capacity available to meet b's requirements, what is the minimum price it should charge? a. $30 b. $35 c. $40 d. $60

B. $35

Explanation:

While making these kind of decisions relevant cost is to be considered.

Since there is an idle capacity lying to meet the demand of Division B, the fixed cost shall be avoided while making this decision.

Thus, concerned cost is variable cost. Since the company is supplying in its own company to other division there might be some avoidable cost in the nature of variable, as for example: transportation, selling and marketing.

Here it is $5

Thus, relevant variable cost = $40 - $5 = $35

This represents the correct option.

the most important factor in the

work process or industry is to retain the interest of the employee. and to

retain them, their salary or profit must be adjusted to the best value. unless

the employee does not do his job properly, employees must receive bonuses or

benefits to ensure them to stay in the company. it will actually make them stay

longer, make them feel important and reduce costs for hiring new employees.

explanation:

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a. $48.75

is the answer to your question