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Required information Skip to question [The following information applies to the questions displayed below.] Washburn...

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Accounting

Required information Skip to question [The following information applies to the questions displayed below.] Washburn Associates has two divisions. Western Division, which has an investment base of $50,000,000, produces and sells 1,400,000 units of a product at a market price of $60 per unit. Its variable costs total $25 per unit. The division also charges each unit $20 of fixed costs based on a capacity of 1,500,000 units. Eastern Division wants to purchase 200,000 units from Western. However, it is willing to pay only $40 per unit because it has an opportunity to accept a special order at a reduced price. The order is economically justifiable only if Eastern can acquire Westerns output at a reduced price

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