Business, 21.04.2020 15:52 ava789

Division A makes a part with the following characteristics:Production capacity in units 31,000 unitsSelling price to outside customers $ 19 Variable cost per unit $ 13 Total fixed costs $ 108,600 Division B, another division of the same company, would like to purchase 18,900 units of the part each period from Division A. Division B is now purchasing these parts from an outside supplier at a price of $15 each. Suppose that Division A is operating at capacity and can sell all of its output to outside customers at its usual selling price. If Division A agrees to sell the parts to Division B at $15 per unit, the company as a whole will be:

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Division A makes a part with the following characteristics:Production capacity in units 31,000 units...

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