Captain Company's records reveal the following: Variable costs:
The variable costs of Division Y will be incurred whether it buys from Division X or from an outside supplier.Division Y can buy the component for $32 per unit from an outside supplier.Division X has no excess capacity.What is the highest price per unit that Division Y should pay to Division X for the components?
A)$8 per unit
B)$22 per unit
C)$24 per unit
D)$32 per unit

Question

Captain Company's records reveal the following:   Variable costs:
 The variable costs of Division Y will be incurred whether it buys from Division X or from an outside supplier.Division Y can buy the component for $32 per unit from an outside supplier.Division X has no excess capacity.What is the highest price per unit that Division Y should pay to Division X for the components?
A)$8 per unit 
B)$22 per unit 
C)$24 per unit 
D)$32 per unit

Quizplus · Accepted Answer

The Answer of Captain Company's records reveal the following:   Variable costs:
 The variable costs of Division Y will be incurred whether it buys from Division X or from an outside supplier.Division Y can buy the component for $32 per unit from an outside supplier.Division X has no excess capacity.What is the highest price per unit that Division Y should pay to Division X for the components?
A)$8 per unit 
B)$22 per unit 
C)$24 per unit 
D)$32 per unit

Captain Company's Records Reveal the Following: Variable Costs