Given the following information for Division K: Division L would like to purchase internally from Division K.Division L now purchases 5,000 units each period from outside suppliers at $49 per unit.Division K has ample excess capacity to handle all of Division L's needs.What is the lowest price that Division K could accept?
A)$50.00.
B)$49.00.
C)$46.00.
D)$39.50.
E)$30.00.

Question

Given the following information for Division K:  Division L would like to purchase internally from Division K.Division L now purchases 5,000 units each period from outside suppliers at $49 per unit.Division K has ample excess capacity to handle all of Division L's needs.What is the lowest price that Division K could accept?
A)$50.00. 
B)$49.00. 
C)$46.00. 
D)$39.50. 
E)$30.00.

Quizplus · Accepted Answer

The Answer of Given the following information for Division K:  Division L would like to purchase internally from Division K.Division L now purchases 5,000 units each period from outside suppliers at $49 per unit.Division K has ample excess capacity to handle all of Division L's needs.What is the lowest price that Division K could accept?
A)$50.00. 
B)$49.00. 
C)$46.00. 
D)$39.50. 
E)$30.00.

Given the Following Information for Division K: Division L