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: 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

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Definitions:

Sloanism

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