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Capacity in units Selling price to outside customers Variable cost per unit Fixed cost per unit (based on capacity) 66,000 $ 69 $ 21
Capacity in units Selling price to outside customers Variable cost per unit Fixed cost per unit (based on capacity) 66,000 $ 69 $ 21 $ 35 The Transmission Division is currently purchasing 6,000 of these connectors per year from an overseas supplier at a cost of $65 per connector. The Connector Division has enough idle capacity to handle all of the Transmission Division's needs. What should be the minimum acceptable transfer price for the connectors from the standpoint of the Connector Division? $21 per unit $69 per unit $65 per unit $56 per unit
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