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A company has two divisions, Alpha and Bravo. Alpha is currently buying a part from an outside supplier. Bravo, which has no excess capacity, makes

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A company has two divisions, Alpha and Bravo. Alpha is currently buying a part from an outside supplier. Bravo, which has no excess capacity, makes and sells the part to outside customers at a selling price of $27 and a variable cost of $15. If Bravo begins selling the part to Alpha, It will use the general transfer pricing rule and be able to reduce its variable cost on internal transfers by $3. Given this data, if sales to outsiders will not be affected, Bravo's transfer price to Alpha will be: Multiple Choice O O O O O None of the answers is correct

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