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Division a Produces a Component for Honda Ltd's Main Product

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Division A produces a component for Honda Ltd's main product - motor vehicles. The division operates as a profit centre. It also sells to outsiders. The present selling price is $75 per component. The company buys 600,000 units of a similar component per year from outside sources. The external purchase price is $73 as a result of a quantity discount. Division A has adequate capacity to supply the needs of the Assembly division. The following data are for Division A: Division A produces a component for Honda Ltd's main product - motor vehicles. The division operates as a profit centre. It also sells to outsiders. The present selling price is $75 per component. The company buys 600,000 units of a similar component per year from outside sources. The external purchase price is $73 as a result of a quantity discount. Division A has adequate capacity to supply the needs of the Assembly division. The following data are for Division A:   The price range within which A would sell components to the Assembly Division is A)  $71 to $73 B)  $65 to $73 C)  $71 to $75 D)  $65 to $75 The price range within which A would sell components to the Assembly Division is


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