(Appendix 12A)The Western Division of Pryto Corporation sells Part D to other companies for $78.50 per unit.According to the company's cost accounting system, the costs to Western Division to make a unit of Product D are: The Southern Division of Pryto Corporation uses a part much like Part D in one of its products.The Southern Division can buy this part from an outside supplier for $78.25 per unit.However, the Southern Division could use Part D instead of this part that it purchases from outside suppliers.What is the most that the Southern Division would be willing to pay the Western Division for Product D?
A)$78.50 per unit
B)$76.00 per unit
C)$74.00 per unit
D)$78.25 per unit

Question

(Appendix 12A)The Western Division of Pryto Corporation sells Part D to other companies for $78.50 per unit.According to the company's cost accounting system, the costs to Western Division to make a unit of Product D are:  The Southern Division of Pryto Corporation uses a part much like Part D in one of its products.The Southern Division can buy this part from an outside supplier for $78.25 per unit.However, the Southern Division could use Part D instead of this part that it purchases from outside suppliers.What is the most that the Southern Division would be willing to pay the Western Division for Product D?
A)$78.50 per unit 
B)$76.00 per unit 
C)$74.00 per unit 
D)$78.25 per unit

Quizplus · Accepted Answer

The Answer is D

(Appendix 12A)The Western Division of Pryto Corporation Sells Part D