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Business, 15.11.2019 23:31 smrichardson0220
Division y of the same company would like to purchase 10,075 units each period from division x. division y now purchases the part from an outside supplier at a price of $32 each. suppose division x has ample excess capacity to handle all of division y's needs without any increase in fixed costs and without cutting into sales to outside customers. if division x refuses to accept the $32 price internally and division y continues to buy from the outside supplier, the company as a whole will be?
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