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Business, 29.04.2021 19:40 aaburto1515

Division M makes a part that it sells to customers outside of the company. Data concerning this part appear below: Selling price to outside customers$75 Variable cost per unit$50 Total fixed costs$400,000 Capacity in units 25,000 Division O of the same company would like to use the part manufactured by Division M in one of its products. Division O currently purchases a similar part made by an outside company for $70 per unit and would substitute the part made by Division M. Division O requires 5,000 units of the part each period. Division M can sell every unit it produces on the outside market. What should be the lowest acceptable transfer price

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Division M makes a part that it sells to customers outside of the company. Data concerning this part...
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