Multiple Choice
A company is highly centralized.Division X,which is operating at capacity,produces a component that it currently sells in a perfectly competitive market for $13 per unit.At the current level of production,the fixed cost of producing this component is $4 per unit and the variable cost is $7 per unit.Division Y would like to purchase this component from Division X.The price that Division X should charge Division Y per unit for this component is:
A) $7.
B) $11.
C) $13.
D) $15.
Correct Answer:
Verified
Correct Answer:
Verified
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