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Business, 18.12.2019 18:31 ciarakelly636owuiup

Noble company has two divisions, a and b. division a manufactures 6,600 units of product per month. the cost per unit is calculated as follows. variable costs $7.30 fixed costs 20.60 total cost $27.90division b uses the product created by division a. no outside market for division a’s product exists. the fixed costs incurred by division a are allocated headquarters-level facility-sustaining costs. the manager of division a suggests that the product be transferred to division b at a price of at least $27.90 per unit. the manager of division b argues that the same product can be purchased from another company for $18.30 per unit and requests permission to do so. required: a-1. how much would the division gain or lose if division b to purchase the product from the outside company for $18.30 per unit? (round your answer to 2 decimal places.) a-2. is it in the best interest of noble company for division b to purchase the product from an outside company? a. yesb. no

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Noble company has two divisions, a and b. division a manufactures 6,600 units of product per month....
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