(Answered) Question - you have been provided with the following

Accounting

Question - You have been provided with the following information for Division X of a decentralized company:

Selling price	$45
Variable cost per unit	33
Fixed cost per unit	12
Sales volume (units)	22,500
Capacity (units)	25,000

Division W would like to purchase all of its units internally. Division W needs 6,000 units each period and currently pays $42 per unit to an outside firm. What is the lowest price that Division X could accept from Division W?

$45.

$42.

$40.

$33.

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