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  3. fanning company has two divisions, a and b. divisi

Fanning Company has two divisions, A and B. Division A manufactures 5,500 units of product...

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Accounting

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Fanning Company has two divisions, A and B. Division A manufactures 5,500 units of product per month. The cost per unit is calculated as follows. Variable costs $ 6.10 Fixed costs 19.7e Total cost $25.80 Division 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 $25.80 per unit. The manager of Division B argues that the same product can be purchased from another company for $19.00 per unit and requests permission to do so. Required a-1. How much would e-2. Is it in the best interest of Fanning the division gain or lose if Division B were to purchase the product from the outside company for $19.00 per unit? (Round your answer to 2 declmal places.) Company for Division B to purchase the product from an outside company? per unjt 8-1. Division's gain or loss s-2. Should Fanning purchase the product from outside

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