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The Newton Company has two divisions: Hamilton and Jasper. The Hamilton Division

ID: 2365971 • Letter: T

Question

The Newton Company has two divisions: Hamilton and Jasper. The Hamilton Division has a total cost of $30 per unit for its product, of which $20 is fixed. The Hamilton Division is at full capacity.

The Jasper Division would like to purchase 20,000 units from Hamilton but thinks that the $35 price Hamilton typically charges outside customers is too high.

Required

Calculate the price at which the Hamilton Division should sell the units to the Jasper Division such that Hamilton will not incur additional losses.

$

Explanation / Answer

for me the correnrt answer on this was 34, i just kept going up by one until the system took the answer, not sure how to reach that conclusion.

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