Division a Produces a Part with the Following Characteristics

question 174

Multiple Choice

Division A produces a part with the following characteristics:

Division B, another division in the company, would like to buy this part from Division A. Division B is presently purchasing the part from an outside source at $28 per unit. If Division A sells to Division B, $1 in variable costs can be avoided.
-Suppose that Division A has ample idle capacity to handle all of Division B's needs without any increase in fixed costs and without cutting into its sales to outside customers.From the point of view of Division A,any sales to Division B should be priced no lower than which of the following?

• A) $17.
• B) $18.
• C) $29.
• D) $30.

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Definitions:

Space Order

An organizational method in writing that arranges ideas according to their physical location or position in space.

Irrelevant Detail

Information that is not pertinent or connected to the main topic or argument.

Topic Sentence

A sentence that summarizes the main idea of a paragraph or section of a text.

Misspelled Words

Words that are written with incorrect letter sequences, which can lead to misunderstanding and can negatively impact the clarity of communication.