Business, 27.05.2021 22:30 malikbryant2002
Division B, another division in the company, would like to buy this part from Division A. Division B is currently purchasing the part from an outside source at $46 per unit. If Division A sells to Division B, $1 in variable costs can be avoided. Suppose that Division A has ample idle capacity to handle all of Division B's needs without any increase in fixed costs and without impacting sales to outside customers. From the point of view of Division A, any sales to Division B should be priced no lower than:
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Division B, another division in the company, would like to buy this part from Division A. Division B...
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