Stellar Notes Is a Factory That Produces Fun and Colorful

Essay

Stellar Notes is a factory that produces fun and colorful writing utensils marketed to students. Within the company, there are various business units including a Plastic Cap Division and a Pen Division. Tara, the production manager of the Pen division has been updating their production worksheets and realized that they will run out of caps before they have satisfied their current orders. They normally purchase their caps from a special supplier, but they are going to ask the internal Plastic Cap Division to see if they can assist with an order of 2,643 pen caps to meet the existing need. The Plastic Cap Division has a production capacity of 88,543 caps, and they have sold 87,433 caps to external customers resulting in external sales of $134,660. They had variable costs of $96,543. If the Plastic Cap Division provided a quote for the caps requested internally, what will the overall price quoted by Plastic Cap Division be for the 2,643 caps requested?