Business, 04.05.2021 16:00 jdaballer3009

Estes Company has two operating divisions, A and B. The following information is provided for Division A: Unit selling price $ 157 Unit variable costs $ 107 Unit fixed costs $ 27 Division B uses the type of product produced by Division A and has approached Division A about buying the product internally. Division B is currently paying $152 to purchase the product from an outside source. If Division A sells internally, it can save $13.50 per unit in variable costs. Assuming that Division A has sufficient excess capacity to produce all of the units requested by Division B, which of the following is the lowest price Division A should consider for the transfer? a. 106.00
b. 143.00
c. 151
d. 93

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Estes Company has two operating divisions, A and B. The following information is provided for Divisi...