You have been provided with the following information for Division Sell of a decentralized company: Division Buy would like to purchase all of its units internally.Division Buy needs 6,000 units each period and currently pays $84 per unit to an outside firm.What is the lowest price that Division Sell could accept from Division Buy? Assume that Division Buy wants to use a sole supplier and will not purchase less than 6,000 from a supplier.
A) $90.
B) $84.
C) $80.
D) $66.
E) $40.
Correct Answer:
Verified
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