In most cases, prices are set by the customers. Competitive market largest competitor. Selling company. In the formula for the minimum transfer price, opportunity cost is the of externally. Variable cost total cost selling price contribution margin Use the following information for questions 3-4 The Wood Division of Fir Products. Inc. manufactures wood moldings and sells variable cost is $40 per unit, and its fixed cost per unit is $14. Fir's president transfer 5,000 units to another company division at a price of $54. Assuming the Wood Division has available capacity of 5,000 units, the minimum accept is $14 $54. $40. $100 Assuming the Wood Division does not have any available capacity, the should accept is $14. $54. $40 $100 The difference between a budget and a standard is that a budget expresses what costs were, while a standard expresses budget expresses management's plans, while a standard reflects a budget expresses a total amount while a standard expresses standards are excluded from the cost accounting system, incorporated into the cost accounting system