Business, 21.12.2020 23:30 Symonek

14. Division B has asked Division A of the same company to supply it with 4,000 units of part K932 this year to use in one of its products. Division B has received a bid from an outside supplier for the parts at a price of $32.00 per unit. Division A has the maximum capacity to produce 10,000 units of part K932 per year. Division A expects to sell 8,000 units of part K932 to outside customers this year at a price of $36.00 per unit. To fill the order from Division B, Division A would have to cut back its sales to outside customers. Division A produces part K932 at a variable manufacturing cost (DM DL Variable OH) of $21.00 per unit. The cost of packing and shipping the parts for outside customers is $3.00 per unit. These packing and shipping costs would not have to be incurred on sales of parts to Division B. Assume that Division B accepts the offer from outside supplier at $32 per unit and declines to transfer any units from Division A, how much does

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14. Division B has asked Division A of the same company to supply it with 4,000 units of part K932 t...

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