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Business, 27.04.2021 14:50 aidananderson

Cichy Products, Inc., has a Valve Division that manufactures and sells a number of products, including a standard valve that could be used by another division in the company, the Pump Division, in one of its products. Data concerning that valve appear below: Capacity in units 80,000 Selling price to outside customers $ 90 Variable cost per unit $ 37 Fixed cost per unit (based on capacity) $ 32 The Pump Division is currently purchasing 5,000 of these valves per year from an overseas supplier at a cost of $85 per valve. What is the maximum price that the Pump Division should be willing to pay for valves transferred from the Valve Division

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