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he materials used by the North Division of Horton Company are currently purchased from outside suppliers at $95 per unit. These same materials are produced
he materials used by the North Division of Horton Company are currently purchased from outside suppliers at $95 per unit. These same materials are produced by Hortons South Division. The South Division can produce the materials needed by the North Division at a variable cost of $51 per unit. The division is currently producing 126,000 units and has capacity of 180,000 units. The two divisions have recently negotiated a transfer price of $74 per unit for 54,000 units. By
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