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Division A produces a product that it sels to the outside market. It has compiled the following: Variable manufacturing cost per unit $9 $3 Variable

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Division A produces a product that it sels to the outside market. It has compiled the following: Variable manufacturing cost per unit $9 $3 Variable selling costs per unit Total fixed manufacturing costs Total fixed selling costs $153000 $30000 $40 Per unit selling price to outside buyers Capacity in units per year 30000 Division B of the same company is currently buying an identical product from an outside provider for $38 per unit. It wishes to purchase 4700 units per year from Division A. Division A is currently selling 25300 units of the product per year. If the internal transfer is made, Division A will not incur any selling costs. What would be the maximum transfer price per unit that Division B would be willing to accept? $30000 Per unit selling price to outside buyers $40 Capacity in units per year 30000 Division B of the same company is currently buying an identical product from an outside provider for $38 per unit. It wishes to purchase 4700 units per year from Division A. Division A is currently selling 25300 units of the product per year. If the internal transfer is made. Division A will not incur any selling costs. What would be the maximum transfer price per unit that Division B would be willing to accept? O $38 O $10 $40 O $9

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