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Division A has the capacity for making 2775 motors per month and regularly sells 1911 motors for $102.18 per motor each month on the intermediate
Division A has the capacity for making 2775 motors per month and regularly sells 1911 motors for $102.18 per motor each month on the intermediate market at a contribution margin of $67.11 per motor. A sister division, Division B, would like to obtain 1606 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. $66.08
b. $67.11
c. $31.01
d. $35.07
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