All of its production will be sold to divisions a and b no

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Kingly corporation Division C will continue to produce parts 101 and 201. All of its production will be sold to Divisions A and B. No other customers are likely to found for these products in the short term given that supply is greater than demand in the market. Division C will manufacture 2,000 units of part 101 for the Division A and 500 units of part 201 for the Division B. Division A will buy 2,000 units of part 101 from Division C and 2,000 units from an external supplier at $900 per unit. Division B will buy 500 units of part 201 from Division C and 1,500 units from an external supplier at $1,900 per unit.

Reference no: EM13597586

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