1 Assume a company has two divisions, Division B and Division C. Division B has provided the following information regarding the one product that it manufactures and sells on the outside market: Selling price per unit (on the outside market) Variable cost per unit Fixed costs per unit (based on capacity) Capacity in units $ 60 $ 44 $ 8 20,000 Division C could use Division B's product as a component part in the manufacture of 4,000 units of its own newly-designed product. Division C has received a quote of $58 from an outside supplier for a component part that is comparable to the one that Division B makes. If the company's divisional managers are evaluated based on their division's profits and Division B is currently selling 15,000 units on the outside market, what is Division B's lowest acceptable transfer price if it were to sell 4,000 units to Division C? Multiple Choice $48 $52 O $44 $50