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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
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.
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