Business, 20.04.2021 15:30, colestout2993
Division S of Kracker Company makes a part that it sells to other companies. Data on that part appear below: Selling price on the intermediate market $ 30 per unit Variable costs per unit $ 22 per unit Fixed costs per unit (based on capacity) $ 7 per unit Capacity in units 50,000 units Division B, another division of Kracker Company, presently is purchasing 10,000 units of a similar product each period from an outside supplier for $28 per unit, but would like to begin purchasing from Division S. Suppose that Division S can sell all that it can produce to outside customers. If Division S sells to Division B at a price of $28 per unit, the company as a whole will be: Multiple Choice worse off by $70,000 each period. better off by $20,000 each period. worse off by $20,000 each period. worse off by $80,000 each period.
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Division S of Kracker Company makes a part that it sells to other companies. Data on that part appea...
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