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Business, 18.08.2021 23:40 MajentaSnow66

Corporation has two divisions. Assume Division Xx has a product that can be sold either to outside customers orto Division YY of the same company for use in its production process. The managers of the divisions are evaluated based on their divisional profits. Division XX: Capacity in units Number of units being sold to outside customers 100,000 Selling price per unit to outside customers $1,497 Variable costs per unit Fixed costs per unit (based on capacity) Division YY: Number of units needed for production Purchase price per unit now being paid to an outside supplier Assume that $210 per unit in variable selling costs can be avoided on D's intracompany sales. Q.) The lowest acceptable intracompany price for the 's selling division is

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