Anne Company's records reveal the following: Variable costs:
The variable costs of Division B will be incurred whether it buys from Division A or from an outside supplier.Division B can buy the parts from an outside supplier at $75 per unit.Division A has no excess capacity.What is the highest price that Division B should pay to Division A for the parts per unit?
A)$24
B)$51
C)$66
D)$75

Question

Anne Company's records reveal the following:   Variable costs:
 The variable costs of Division B will be incurred whether it buys from Division A or from an outside supplier.Division B can buy the parts from an outside supplier at $75 per unit.Division A has no excess capacity.What is the highest price that Division B should pay to Division A for the parts per unit?
A)$24 
B)$51 
C)$66 
D)$75

Quizplus · Accepted Answer

The Answer of Anne Company's records reveal the following:   Variable costs:
 The variable costs of Division B will be incurred whether it buys from Division A or from an outside supplier.Division B can buy the parts from an outside supplier at $75 per unit.Division A has no excess capacity.What is the highest price that Division B should pay to Division A for the parts per unit?
A)$24 
B)$51 
C)$66 
D)$75

Anne Company's Records Reveal the Following: Variable Costs