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l Division M makes a part that it sells to customers outside of the company. Data concerning this part appear below: Selling price to outside

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Division M makes a part that it sells to customers outside of the company. Data concerning this part appear below: Selling price to outside customers Variable cost per unit Total fixed costs Capacity in units $ 75 $ 50 $400,000 25,000 Division of the same company would like to use the part manufactured by Division Min one of its products. Division currently purchases a similar part made by an outside company for $70 per unit and would substitute the part made by Division M. Division requires 5,000 units of the part each period. Division M can sell every unit it produces on the outside market. What should be the lowest acceptable transfer price? Multiple Choice $75 $66 $16 $50 $25

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