You have been provided with the following information for Division X of a decentralized company: Division W would like to purchase all of its units internally.Division W needs 6,000 units each period and currently pays $42 per unit to an outside firm.What is the lowest price that Division X could accept from Division W? Assume that Division W wants to use a sole supplier and will not purchase less than 6,000 from a supplier.
A)$45.
B)$42.
C)$40.
D)$38.

Question

You have been provided with the following information for Division X of a decentralized company:  Division W would like to purchase all of its units internally.Division W needs 6,000 units each period and currently pays $42 per unit to an outside firm.What is the lowest price that Division X could accept from Division W? Assume that Division W wants to use a sole supplier and will not purchase less than 6,000 from a supplier.
A)$45. 
B)$42. 
C)$40. 
D)$38.

Quizplus · Accepted Answer

The Answer of You have been provided with the following information for Division X of a decentralized company:  Division W would like to purchase all of its units internally.Division W needs 6,000 units each period and currently pays $42 per unit to an outside firm.What is the lowest price that Division X could accept from Division W? Assume that Division W wants to use a sole supplier and will not purchase less than 6,000 from a supplier.
A)$45. 
B)$42. 
C)$40. 
D)$38.

You Have Been Provided with the Following Information for Division