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(Appendix 11A) Bacot Products, Inc

question 25

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(Appendix 11A) Bacot Products, Inc., has a Valve Division that manufactures and sells a number of products, including a standard valve that could be used by another division in the company, the Pump Division, in one of its products. Data concerning that valve appear below:
(Appendix 11A)  Bacot Products, Inc., has a Valve Division that manufactures and sells a number of products, including a standard valve that could be used by another division in the company, the Pump Division, in one of its products. Data concerning that valve appear below:    The Pump Division is currently purchasing 8,000 of these valves per year from an overseas supplier at a cost of $47 per valve. -What is the maximum price that the Pump Division should be willing to pay for valves transferred from the Valve Division? A)  $45 per unit B)  $28 per unit C)  $47 per unit D)  $17 per unit The Pump Division is currently purchasing 8,000 of these valves per year from an overseas supplier at a cost of $47 per valve.
-What is the maximum price that the Pump Division should be willing to pay for valves transferred from the Valve Division?


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