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Division A of Sandpiper Inc. makes a component that sells externally for $150. Each unit of the component has $30 of variable cost and $20
Division A of Sandpiper Inc. makes a component that sells externally for $150. Each unit of the component has $30 of variable cost and $20 of allocated fixed costs. Division B needs this component to make the firms main product. What is the transfer price if Division A is operating at its full capacity?
A. | $50 | |
B. | $30 | |
C. | $20 | |
D. | $150 |
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