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Division 1 of a company has provided the following information regarding the one product that it manufactures and sells on the outside market: Selling price
Division 1 of a company 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 $103.00 $ 69.00 $ 10.00 30,000 Division has been offered the opportunity to sell 5,000 units of its only product to another division within the same company. If Division 1 is currently selling 27,000 units on the outside market, what is the lowest acceptable transfer price for Division 1 if it were to sell 5,000 units to the other division? Multiple Choice $82.60 $93.00 $80.00 $90.00
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