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 Division A is currently operating at capacity and can sell all of the units it produces on the outside market for its usual selling price.From the point of view of Division A,any sales to Division B should be priced no lower than which of the following?
Definitions:
Secret Sauce
An original or unique ingredient, technique, or factor that differentiates a product, service, or company from its competitors, often contributing to its success.
Social Change
The transformation of culture, behavior, social institutions, and social structures over time in a society.
Strategic PR Plan
A structured approach to communicating and promoting an organization’s message and goals to its target audience effectively.
Management Buy-in
The support and acceptance of a proposal or project by the higher-level management within an organization.
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