Calculate the minimum special price per unit that would be charged by each of the three...

Calculate the minimum special price per unit that would be charged by each of the three divisions for a special order of 100 units of their products.
Calculate the minimum special price per unit that would be charged by each of the three divisions for a special order of 1,000 units of their products.
What would be the maximum price per unit that David Inc would pay to outsource (buy) 3,000 units of Division 1 products from an outside supplier? Assume fixed costs remain unchanged and that the products would be sold to its current customers.


Selling price per unit	$100	$200	$250
Variable cost per unit	$60	$90	$125
Fixed costs for the month for the division ($)	$84,000	$368,000	$450,000
Total demand per month for the divisions (units)	3,000	3200	3600

Expert Solution

Rahul Sunny answered 8 months ago

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