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Royal Products, Incorporated, Has a Connector Division That Manufactures and Sells

Question 266

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Royal Products, Incorporated, has a Connector Division that manufactures and sells a number of products, including a standard connector that could be used by another division in the company, the Transmission Division, in one of its products. Data concerning that connector appear below: Royal Products, Incorporated, has a Connector Division that manufactures and sells a number of products, including a standard connector that could be used by another division in the company, the Transmission Division, in one of its products. Data concerning that connector appear below:   The Transmission Division is currently purchasing 6,000 of these connectors per year from an overseas supplier at a cost of $65 per connector.What is the maximum price that the Transmission Division should be willing to pay for connectors transferred from the Connector Division? A)  $35 per unit B)  $65 per unit C)  $56 per unit D)  $21 per unit The Transmission Division is currently purchasing 6,000 of these connectors per year from an overseas supplier at a cost of $65 per connector.What is the maximum price that the Transmission Division should be willing to pay for connectors transferred from the Connector Division?


A) $35 per unit
B) $65 per unit
C) $56 per unit
D) $21 per unit

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