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Royal Products, Incorporated, has a Connector Division that manufactures and sells a number of products, including a standard connector that could be used by another division in the company, the Transmission Division, in one of its products. Data concerning that connector appear below: Capacity in units 66,000 Selling price to outside customers $ 69 Variable cost per unit $ 21 Fixed cost per unit (based on capacity) $ 35 The Transmission Division is currently purchasing 6,000 of these connectors per year from an overseas supplier at a cost of $65 per connector. What is the maximum price that the Transmission Division should be willing to pay for connectors transferred from the Connector Division
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Royal Products, Incorporated, has a Connector Division that manufactures and sells a number of produ...
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