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Alpha Division makes a part with the following characteristics: Production capacity in units Sales to outside customers Selling price to outside customers Variable cost per

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Alpha Division makes a part with the following characteristics: Production capacity in units Sales to outside customers Selling price to outside customers Variable cost per unit Total fixed costs 30,000 units 30,000 units $30 $20 $120,000 Beta Division, another division of the same company, would like to purchase 5,000 units of the part each period from Alpha Division. Beta Division is now purchasing these parts from an outside supplier at a price of $28 each. Managers make decisions related to purchases and sales of its own products. The minimum transfer price is: $30. $24. $20. $28. Division QQ makes a part with the following characteristics: Production capacity in units Sales to outside customers Selling price to outside customers Variable cost per unit Total fixed costs 50,000 units 46,000 units $80 $50 $300,000 Division RR, another division of the same company, would like to purchase 6,000 units of the part each period from Division Q0. Division RR is now purchasing these parts from an outside supplier at a price of $78 each. Managers of each division are free to make decisions related to purchases and sales of its own products. The minimum transfer price is: $50. $80. $78. O $60. Division AAA makes a part with the following characteristics: Production capacity in units Sales to outside customers Selling price to outside customers Variable cost per unit Total fixed costs 30,000 units 30,000 units $30 $20 $120,000 Division BBB, another division of the same company, would like to purchase 5,000 units of the part each period from Division AAA. Division BBB is now purchasing these parts from an outside supplier at a price of $28 each. Managers of each division are free to make decisions related to purchases and sales of its own products. Division AAA can avoid $1 per unit in commissions on any sales to Division BBB. The minimum transfer price is: $30. $29. $19. $20

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