Business, 22.11.2019 06:31 lori90

Division m makes a part that it sells to customers outside of the company. data concerning this part appear below: selling price to outside customers $ 75 variable cost per unit $ 50 total fixed costs $ 400,000 capacity in units 25,000 division o of the same company would like to use the part manufactured by division m in one of its products. division o currently purchases a similar part made by an outside company for $70 per unit and would substitute the part made by division m. division o requires 5,000 units of the part each period. division m can sell every unit it produces on the outside market. what should be the lowest acceptable transfer price from the perspective of division.

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Division m makes a part that it sells to customers outside of the company. data concerning this part...

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