ou have been provided with the following information for Division X of a decentralized company: Selling price $ 90 Variable cost per unit 66 Fixed cost per unit 20 Sales volume (units) 22,500 Capacity (units) 25,000 Division Y of the same company would like to purchase all of its units internally. Division Y needs 6,000 units each period and currently pays $84 per unit to an outside firm. What is the lowest price that Division X could accept from Division Y? (Assume that Division Y wants to use a sole supplier and will not purchase less than 6,000 from a supplier.) Multiple Choice $66. $90. $80. $84.

ou have been provided with the following information for Division X of a decentralized company: Selling price $ 90 Variable cost per unit 66 Fixed cost per unit 20 Sales volume (units) 22,500 Capacity (units) 25,000 Division Y of the same company would like to purchase all of its units internally. Division Y needs 6,000 units each period and currently pays $84 per unit to an outside firm. What is the lowest price that Division X could accept from Division Y? (Assume that Division Y wants to use a sole supplier and will not purchase less than 6,000 from a supplier.) Multiple Choice $66. $90. $80. $84.

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter10: Cost Analysis For Management Decision Making

Section: Chapter Questions

Problem 14E: A company has prepared the following statistics regarding its production and sales at different...

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