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Division A has costs of R20 per unit and transfer goods to Division B which has additional costs of R8 per unit. Division B sells
Division A has costs of R20 per unit and transfer goods to Division B which has additional costs of R8 per unit. Division B sells externally at R30 per unit. The company has a policy of setting transfer prices at cost + 20%. The managers of the 2 divisions receive a bonus which is based on exceeding a target ROI. Calculate the revenue of Division A. Select one: a. R24 b. R22 C. R25 d. R100 e. All of the above
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