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TRUE or FALSE? From the buying division's perspective, the highest transfer price the division should be willing to pay is the seller's full production cost per unit. O True False TRUE or FALSE? From the selling division's perspective, when a transferred item can be sold to an external customer, the price charged to the external customer represents a lower bound (or floor) on the price that should be charged to the internal buyer. True False The Screen Division provides screens for the Monitor Division of a company. Monitor Division has offered to purchase 1,000 screens from Screen Division at a transfer price of $115, which is Screen Division's full production cost. Unit costs and selling price data for Screen Division are as follows: $25 per Direct materials Direct screen $55 per labor screen $20 per screen $15 per Variable overhead Fixed overhead Market price screen $195 per screen The Screen Division has the capacity to produce 7,700 screens per month and plans to use all its capacity in the current month to produce screens for external customers. What is the lowest transfer price Screen Division can charge Monitor Division without decreasing Screen Division's operating income? $80 $100 $115 $195 None of the above