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Let's Review 8 Division A of Kiri Ltd. produces and sells component parts. Unit costs are $80 for direct materials, $32 for direct labour, $18

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Let's Review 8 Division A of Kiri Ltd. produces and sells component parts. Unit costs are $80 for direct materials, $32 for direct labour, $18 for variable overhead and $20 for fixed overhead. It can sell the components externally for $165 per unit. Division B of Kiri Ltd. can purchase the component externally as a cost of $180 per unit. Division B has approached Division A and asked that it supply 25,000 units at a negotiated transfer price. Assuming Division A has no idle capacity, what are the minimum and maximum transfer price, respectively the Divisions may consider? a. $130 and $165 b. $130 and $165 c. $145 and $180 d. $165 and $180

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