Multiple Choice
You have been provided with the following information for Division X of a decentralized company:
Division Y of the same company would like to purchase all of its units internally. Division Y needs 6,000 units each period and currently pays $84 per unit to an outside firm. What is the lowest price that Division X could accept from Division Y? (Assume that Division Y wants to use a sole supplier and will not purchase less than 6,000 from a supplier.)
A) $90.
B) $84.
C) $80.
D) $66.
Correct Answer:

Verified
Correct Answer:
Verified
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