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Division A has the capacity for making 2907 motors per month and regularly sells 1868 motors for $102.27 per motor each month on the intermediate

Division A has the capacity for making 2907 motors per month and regularly sells 1868 motors for $102.27 per motor each month on the intermediate market at a contribution margin of $67.35 per motor. A sister division, Division B, would like to obtain 1411 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. $17.76

b. $34.92

c. $67.35

d. $52.68

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