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Markey Corporation consists of two divisions, North and South. The North makes Glop, a product that can be used in the production of the product

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Markey Corporation consists of two divisions, North and South. The North makes Glop, a product that can be used in the production of the product that the South division makes and sells. Both divisions are considered profit centers. The following data are available concerning Glop and the two divisions: North South Average units produced 150,000 Average units sold 150,000 Variable manufacturing cost $2 per unit Variable finishing cost per $5 unit Fixed divisional costs $75,000 $125,000 The North Division can sell all of its output outside the company for $4 per unit. The South Division can buy the Glop from other firms for $4. The South Division sells its product for $12.What is the optimal transfer price in this case

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