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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 manufactures

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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 manufactures and sells on the outside market Selling price per unit (on the outside market) variable cont per unit Fixed costs per unit (based on capacity) Capacity in units $ 59 $ 45 $ 4 20,000 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 has received a quote of $58 from an outside supplier for a component part that is comparable to the one that Division A mokes. of the company's divisional managers are evaluated based their division's profits and Division A is currently selling 18,000 units on the outside market, what Is the range of acceptable transfer prices between the two divisions? Multiple Choice $52.00 s Transfer price s $58.00 0 $57.00 s Transfer price s $59.00 0 $52.00 s Transfer price s $61.00 $57.00 s Transfer price s $61.00

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