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Division of Ace Company makers and sellis wheels that can either be sold to outside customers or transferred to Division 2 The following data are
Division of Ace Company makers and sellis wheels that can either be sold to outside customers or transferred to Division 2 The following data are evallable from last month Division Selling price to outside customers Variable cost when sold to outside customers Capacity $ $ 55 per unit 33 per unit 9,000 units Division 2 Number of wheels needed per month Price per wheel paid to an outside supplier 3.000 units 52 per unit 1 Division 1 sells the wheels to Division 2. Division 1 can avoid $1.00 per unit in sales commissions Suppose that Division 1 sells 4,500 units per month to outside customers. According to the formula in the text, what is the lowest acceptable transfer price from the viewpoint of the selling division of Division 2 requires 3.000 units per month from DIVISION ? $52,00 per unit $33.00 per unit $55.00 per un O $32.00 per unit
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