Athos and Porthos are divisions of Dumas, Inc., operating asprofit centers. Both are profitable. One of the products producedby Athos is A62, which normally sells for $180/unit. Cost is$125/unit (40% variable). Porthos is planning a new product, and istaking bids on one of the subassemblies. A62 would be appropriatefor this subassembly with some modification.
a) Discuss the factors Athos should consider when submitting abid.
b) If Athos does not submit the low bid, might Porthos stillbenefit from accepting their bid? Discuss briefly.
