Good, Inc.'s records reveal the following:
The variable cost of Division B will be incurred whether it buys from Division A or from an outside supplier.
-If Division A is NOT at full capacity, the lowest price at which it would be willing to sell to Division B would be
A) $24.
B) $18.
C) $12.
D) $38.

Question

Good, Inc.'s records reveal the following:
   The variable cost of Division B will be incurred whether it buys from Division A or from an outside supplier.
-If Division A is NOT at full capacity, the lowest price at which it would be willing to sell to Division B would be
A) $24. 
B) $18. 
C) $12. 
D) $38.

Quizplus · Accepted Answer

If Division A is not at full capacity, it would be willing to sell to Division B at the variable cost, which is the lowest price to cover its costs, typically represented by $12 in such scenarios.

Good, Inc.'s Records Reveal the Following