Division a of DymocksLtd Has Operating Data as Follows Division B Wants to Purchase Units from Division
a

question 4

Multiple Choice

Division A of DymocksLtd has operating data as follows: $\begin{array}{llcc} \text { Capacity} & \text { 20,000 units } \\ \text { Selling price }& \text {\$ 80 per unit }\\ \text { Variable costs} & \text { \$ 45 per unit }\\ \text {Fixed costs } & \text { \$ 20 per unit }\\\end{array}$

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 is operating at capacity, what is the minimum price it should charge?

• A) $75
• B) $20
• C) $40
• D) $60

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Definitions:

Proximity

The state of being near or close to something or someone, often influencing social connections and interactions.

Scientific Prediction

The act of forecasting future events or explaining phenomena based on scientific data, theories, and models.

Standards of Beauty

Socially constructed ideals that define what is considered physically attractive or desirable in a society.

Culturally Variable

Aspects or phenomena that show differences across cultures, indicating that they are not fixed but can vary depending on cultural context.