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How much the minimum selling price that p division should

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Problem 1: P Division makes and sells a single product. Presently it sells 12, 000 units per year to outside customers at P24 per unit. The annual capacity is 20,000 units and the variable cost to make each unit is P16. All selling expenses are fixed. L division would like to buy 10,000 units a year from P division. How much the minimum selling price that P division should charge L division?

Reference no: EM132781079

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