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Division A produces a product that it sells to the outside market. It has compiled the following Variable manufacturing cost per unit $8 Variable selling
Division A produces a product that it sells to the outside market. It has compiled the following Variable manufacturing cost per unit $8 Variable selling costs per unit $3 Total foxed manufacturing costs $156000 Total fived selling costs $30000 Per unit selling price to outside $58 buyers Capacity in units per year 30000 Division of the same company is currently buying an identical product from an outside provider for $56 per unit. It wishes to purchase 5000 units per year from Division A. Division A is currently selling 20000 units of the product per year. If the internal transfer is made. Division A will not incur any selling costs. What would be the minimum transfer price per unit that Divalon Awould be willing to accept? $8.00 $16.60 558.00 $17.40
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