Business
Business, 20.04.2020 19:19, nails4life324

Division A makes a part with the following characteristics: Production capacity in units 30,600 units Selling price to outside customers $ 20 Variable cost per unit $ 13 Total fixed costs $ 109,000 Division B, another division of the same company, would like to purchase 15,700 units of the part each period from Division A. Division B is now purchasing these parts from an outside supplier at a price of $16 each. Suppose that Division A is operating at capacity and can sell all of its output to outside customers at its usual selling price. If Division A agrees to sell the parts to Division B at $16 per unit, the company as a whole will be:

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