Captain Company's Records Reveal the Following: Variable Costs

question 86

Multiple Choice

Captain Company's records reveal the following: Variable costs:
The variable costs of Division Y will be incurred whether it buys from Division X or from an outside supplier.Division Y can buy the component for $32 per unit from an outside supplier.Division X has no excess capacity.What is the highest price per unit that Division Y should pay to Division X for the components?

• A)$8 per unit
• B)$22 per unit
• C)$24 per unit
• D)$32 per unit