Division A of Sibley Ltd has operating data as follows: B wants to purchase units from Division A. If Division A agrees to sell units to Division B, A's variable costs will be $5 less per unit.
If Division A has capacity available to meet B's requirements, what is the minimum price it should charge?
A) $40
B) $75
C) $20
D) $60

Question

Division A of Sibley Ltd has operating data as follows:  B wants to purchase units from Division A. If Division A agrees to sell units to Division B, A's variable costs will be $5 less per unit.
If Division A has capacity available to meet B's requirements, what is the minimum price it should charge?
A) $40 
B) $75 
C) $20 
D) $60

Quizplus · Accepted Answer

The Answer of Division A of Sibley Ltd has operating data as follows:  B wants to purchase units from Division A. If Division A agrees to sell units to Division B, A's variable costs will be $5 less per unit.
If Division A has capacity available to meet B's requirements, what is the minimum price it should charge?
A) $40 
B) $75 
C) $20 
D) $60

Division a of Sibley Ltd Has Operating Data as Follows