Division a of DymocksLtd Has Operating Data as Follows Division B Wants to Purchase Units from Division
a

Multiple Choice

Division A of DymocksLtd has operating data as follows: $\begin{array}{llcc} \text { Capacity} & \text { 20,000 units } \\ \text { Selling price }& \text {\$ 80 per unit }\\ \text { Variable costs} & \text { \$ 45 per unit }\\ \text {Fixed costs } & \text { \$ 20 per unit }\\\end{array}$

Division 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 is operating at capacity, what is the minimum price it should charge?

A) $75
B) $20
C) $40
D) $60