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Assume a company has two divisions, Division A and Division B . Division A has provided the following information regarding the one product that it

Assume a company has two divisions, Division A and Division B. Division A has provided the following information regarding the one product that it
manufactures and sells on the outside market:
Division B could use Division A's product as a component part in the manufacture of 4,000 units of its own newly-designed product. Division B has received
a quote of $58 from an outside supplier for a component part that is comparable to the one that Division A makes.
If the company's divisional managers are evaluated based on their division's profits and Division A is currently selling 15,000 units on the outside market,
what is Division B's highest acceptable transfer price if it were to buy 4,000 units from Division A?
Multiple Choice
$48
$52
$44
$58
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