Question: you have been provided with the following information for division...
You have been provided with the following information for
Division X of a decentralized company:
|Variable cost per unit||61|
|Fixed cost per unit||26|
|Sales volume (units)||21,600|
Division Y of the same company would like to purchase all of its units internally. Division Y needs 11,100 units each period and currently pays $79 per unit to an outside firm. What is the lowest price that Division X could accept from Division Y? (Assume that Division Y wants to use a sole supplier and will not purchase less than 11,100 from a supplier.)
Please show all of your work.