Suppose that the division described in Exercise 5 now has the opportunity to increase its…
Suppose that the division described in Exercise 5 now has the opportunity to increase its drive-train capacity by subcontracting some of this assembly work to a nearby firm. The drive-train assembly department cost breakdown per unit is as follows: The subcontractor will pick up the parts and deliver the assembled drive-trains back to the division. What is the maximum amount that the division would be willing to pay the subcontractor for assembly of each type of drive-train? Apr 24 2022 07:40 AM
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