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Division A has the capacity for making 2713 motors per month and regularly sells 2000 motors for $96.88 per motor each month on the intermediate
Division A has the capacity for making 2713 motors per month and regularly sells 2000 motors for $96.88 per motor each month on the intermediate market at a contribution margin of $63.28 per motor. A sister division, Division B, would like to obtain 1522 motors each month from Division A. In computing a transfer price per motor using the transfer pricing formula, what is the minimum transfer price:
Select one:
a. $63.28
b. $33.60
c. $67.24
d. $33.64
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