O Alpha and Beta are divisions within the same company. The managers of both divisions...
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Accounting
O Alpha and Beta are divisions within the same company. The managers of both divisions are evaluated based on their own division's return on investment (ROI). Assume the following information relative to the two divisions: Case 2 3 4 ha Division: apacity in units 80,000 400,000 150,000 300,000 Number of units now being sold to outside customers 80,000 400,000 100,000 300,000 elling price per unit to outside customers $30 $90 $75 $50 ariable costs per unit $18 $65 $40 $26 ixed costs per unit (based on capacity) $6 $15 $20 $9 a Division: lumber of units needed annually 5,000 30,000 20,000 120,000 Purchase price now being paid to an outside supplier $27 $89 $75*
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