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3) The Bill Swerski Company produces Chicago Bears Memorabilia. One of its divisions, the Ditka Division, produces a special brand of bobblehead that it sells
3) The Bill Swerski Company produces Chicago Bears Memorabilia. One of its divisions, the Ditka Division, produces a special brand of bobblehead that it sells to customers outside of the comnanu nata moncernine this bobblehead appears below: The Jim McMahon Division of the Bill Swerski Company would like to use the bobblehead manufactured by the Ditka Division in one of its memorabilia collections. The Jim McMahon Division currently purchases similar bobbleheads made by an outside company for $49 per pound and would substitute the bobblehead made by the Ditka Division. The Jim McMahon Division requires 5,000 bobbleheads each period. The Ditka Division has sufficient excess capacity to handle all of Jim McMahon Division's needs without any increase in fixed costs and without cutting into outside sales. What is the lowest transfer price the Ditka Division will accept? \begin{tabular}{ll} A) & $50. \\ B) & $49. \\ C) & $46. \\ D) & $30. \\ ) & $66. \end{tabular}
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