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13. Tuttle Motorcycles company manufactures and sells high-priced motorcycles. The Engine Division produces and sells engines to other motorcycle companies and internally to the Production

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13. Tuttle Motorcycles company manufactures and sells high-priced motorcycles. The Engine Division produces and sells engines to other motorcycle companies and internally to the Production Division. It has been decided that the Engine Division will sell 20,000 units to the Production Division at Sh 1,050 a unit. The Engine Division, currently operating at capacity, has a unit sales price of Sh 2,550 and unit variable costs and fixed costs of Sh 1,050 and Sh 750, respectively. The Production Division is currently paying Sh 2,400 per unit to an outside supplier. Sh 90 per unit can be saved on internal sales from reduced selling expenses. What is the minimum transfer price that the Engine Division should accept? a. Sh 2,460 b. Sh 2,550C Sh 2.400 d. Sh 1,500

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