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Herto Ltd. X Division purchases from an outside supplier for $56 per unit. The company's Y Division, which has no excess capacity, makes and sells

Herto Ltd. X Division purchases from an outside supplier for $56 per unit. The company's Y Division, which has no excess capacity, makes and sells the same part for external customers at a variable cost of $38 and a selling price of $59. If Y division commences sales to X division it will (1) use the general rule and (2) be able to reduce the variable cost on internal transfers by $4. Y division should establish a transfer price of: Select one: O a. $38 O b. $55 c. $58 d. $34

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