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

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Assume a company has two divisions, Division and Division C. Division B 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 cost per unit Fixed costs per unit (based on capacity) Capacity in units $ 60 $ 44 8 20,000 Division C could use Division B's product as a component part in the manufacture of 4,000 units of its own newly-designed product, Division Chas received a quote of $58 from an outside supplier for a component part that is comparable to the one that Division makes. If the company's divisional managers are evaluated based on their division's profits and Division 8 is currently selling 15,000 units on the outside market, what is Division B's lowest acceptable transfer price if it were to seli 4,000 units to Division C? Multiple Choice O $44 O O $52 O $48 $50

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