If Division A transferred 200 units to Division B for 25, what is the profit for Division B (if it then sold 200 units to an external customer, after the internal transfer)?

1. 400

2. 0

3. -9,600

4. -5,000

Costs of Each Division Variable cost-per-unit Fixed Costs Transfer Price = 25 A 5 15,000 B 3 10,000 Selling Price 35 30 25 Quantity 100 200 300