You Have Been Provided with the Following Information for the Wool

question 69

Multiple Choice

You have been provided with the following information for the Wool Division of a decentralized company:
$$\begin{array} { | l | r | } \hline \text { Selling price } & \$ 46 \\\hline \text { Variable cost per unit } & 33 \\\hline \text { Fixed costper unit } & 12 \\\hline \text { Sales volume (units) } & 22,500 \\\hline \text { Capacity (units) } & 26,000 \\\hline\end{array}$$ The Blanket Division would like to purchase all of its units internally.The Blanket Division needs 6,000 units each period and currently pays $42 per unit to an outside firm.What is the lowest price that Wool Division could accept from the Blanket Division? Assuming that the Blanket Division wants to use a sole supplier and will not purchase less than 6,000 from a supplier,what is the lowest price that Wool Division could accept from the Blanket Division?

• A) $45.
• B) $42.
• C) $40.
• D) $38.

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A theory that views society as a complex system characterized by inequality and conflict, which generate social change.