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Use the Following Information for the Next 2 Questions

question 64

Multiple Choice

Use the following information for the next 2 questions.
Division A of Sibley, Inc. has operating data as follows: Use the following information for the next 2 questions. Division A of Sibley, Inc. has operating data as follows:   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)  $40 B)  $75 C)  $20 D)  $60 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?


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