Business, 30.05.2020 23:01 lizdeleon248

The Epic Company sells suit jackets and buttons. The button division can produce 200,000 buttons per year and sells 160,000 buttons externally for $.30 each. The buttons produce a contribution margin of $.16 per button. The suit jacket division needs 40,000 buttons this year and currently pays $.18 per button to purchase the buttons externally. Should the button division sell the buttons to the suit division? Why or why not? A : No, because Epic Company will be better off if the button division sells only externally. B : Yes, Epic Company will save $.02 per button. C : Yes, the Epic Company will save $.04 per button. D : Yes, Epic Company will save $.12 per button.

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The Epic Company sells suit jackets and buttons. The button division can produce 200,000 buttons per...