Use the following information for the next 2 questions.
Division A produces a component for Hielkema Company's main product - automobiles. The division operates as a profit center. It also sells to outsiders. The present selling price is $75 per component. The company buys 600,000 units of a similar component per year from outside sources. The external purchase price is $73 as a result of a quantity discount. Division A has adequate capacity to supply the needs of the Assembly division. The following data are for Division A:
-The price range within which A would sell components to the Assembly Division is
A) $71 to $73
B) $65 to $73
C) $71 to $75
D) $65 to $75

Question

Use the following information for the next 2 questions.
Division A produces a component for Hielkema Company's main product - automobiles. The division operates as a profit center. It also sells to outsiders. The present selling price is $75 per component. The company buys 600,000 units of a similar component per year from outside sources. The external purchase price is $73 as a result of a quantity discount. Division A has adequate capacity to supply the needs of the Assembly division. The following data are for Division A: 
-The price range within which A would sell components to the Assembly Division is
A) $71 to $73 
B) $65 to $73 
C) $71 to $75 
D) $65 to $75

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The Answer of Use the following information for the next 2 questions.
Division A produces a component for Hielkema Company's main product - automobiles. The division operates as a profit center. It also sells to outsiders. The present selling price is $75 per component. The company buys 600,000 units of a similar component per year from outside sources. The external purchase price is $73 as a result of a quantity discount. Division A has adequate capacity to supply the needs of the Assembly division. The following data are for Division A: 
-The price range within which A would sell components to the Assembly Division is
A) $71 to $73 
B) $65 to $73 
C) $71 to $75 
D) $65 to $75

Use the Following Information for the Next 2 Questions