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3 19 $130 per The Lens Division provides lenses for the Camera Division of a company. Camera Division has offered to purchase 1,000 lenses from

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3 19 $130 per The Lens Division provides lenses for the Camera Division of a company. Camera Division has offered to purchase 1,000 lenses from the Lens Division at a transfer price of $260, which is Lens Division's full production cost. Unit costs and selling price data for the Lens Division are as follows: Direct $70 per materials lens Direct labor lens Variable overhead lens Fixed $20 per overhead lens Market $320 per price lens $40 per The Lens Division has the capacity to produce 10,000 lenses per month and currently plans to produce 8,500 lenses in the current month. What is the lowest transfer price the Lens Division can charge the Camera Division without decreasing Lens Division's operating income? $260 O $240 O $320 $300 None of the above

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