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Paige Inc Has a Division That Makes Paint and Another Division

Question 43

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Paige Inc. has a division that makes paint and another division that constructs subdivision houses. The paint division incurs the following costs for one gallon of paint:
Paige Inc. has a division that makes paint and another division that constructs subdivision houses. The paint division incurs the following costs for one gallon of paint: The Paint Division can make 1,000,000 gallons per year, and is at capacity. The Construction Division currently buys its paint from an outside supplier for $5.20 per gallon (the same price that the Paint Division receives). The Paint Division can make 1,000,000 gallons per year, and is at capacity. The Construction Division currently buys its paint from an outside supplier for $5.20 per gallon (the same price that the Paint Division receives).
Paige Inc. has a division that makes paint and another division that constructs subdivision houses. The paint division incurs the following costs for one gallon of paint: The Paint Division can make 1,000,000 gallons per year, and is at capacity. The Construction Division currently buys its paint from an outside supplier for $5.20 per gallon (the same price that the Paint Division receives).

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