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Hello John,
Kindly explain why you haven’t considered the external selling price $100 in the cost charge out to division B. My understanding so far is, if demand is unlimited for y, then we have to consider that price in charging our TP+any lost in contribution
Thanks in advance for clarificationBut we would never sell Y externally – we would be better always to sell X externally because the contribution per hour from selling X is greater than that from selling Y.
I do explain this in the free lecture working through this example.
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