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? 20 Division M of MCO Company produces a part it sells to other companies. Capacity and cost data for the part are as follows:
? 20 Division M of MCO Company produces a part it sells to other companies. Capacity and cost data for the part are as follows: Capacity 75.000 units Selling price $72 per unit Variable cost $50 per unit Fixed costat $12 per unit capacity) Division C, another division of MCO Company, would like to buy 8,000 units of this part from Division M. Division is currently buying the part from an outside source at $70 per unit. Assume Division M currently plans to produce and sell 73.000 units of its part to other companies. According to the transfer pricing guidelines, what is the lowest transfer price Division M should be willing to accept from Division for its part? $62 per unit $50 per unit $72 per unit $66,50 per unit None of the above
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