Paige Inc. has a division that makes paint and another division that constructs subdivision houses. The paint division incurs the following costs for one gallon of paint:
The Paint Division can make 1,000,000 gallons per year, and is at capacity. The Construction Division currently buys its paint from an outside supplier for $5.20 per gallon (the same price that the Paint Division receives).

Question

Paige Inc. has a division that makes paint and another division that constructs subdivision houses. The paint division incurs the following costs for one gallon of paint:
  The Paint Division can make 1,000,000 gallons per year, and is at capacity. The Construction Division currently buys its paint from an outside supplier for $5.20 per gallon (the same price that the Paint Division receives).

Quizplus · Accepted Answer

The Answer of Paige Inc. has a division that makes paint and another division that constructs subdivision houses. The paint division incurs the following costs for one gallon of paint:
  The Paint Division can make 1,000,000 gallons per year, and is at capacity. The Construction Division currently buys its paint from an outside supplier for $5.20 per gallon (the same price that the Paint Division receives).

Paige Inc Has a Division That Makes Paint and Another Division