What is the lowest price that Division X could accept

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Reference no: EM132960035

Question - You have been provided with the following information for Division X of a decentralized company:

Selling price $95

Variable cost per unit 65

Fixed cost per unit 28

Sales volume (units) 22,900

Capacity (units) 25,200

Division Y of the same company would like to purchase all of its units internally. Division Y needs 6,900 units each period and currently pays $89 per unit to an outside firm. What is the lowest price that Division X could accept from Division Y?

Reference no: EM132960035

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