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.

Question

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.

Quizplus · Accepted Answer

The Answer of 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.

You Have Been Provided with the Following Information for Division