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N> Your Division makes a part that can either be sold to outside customers or transferred internally to Division Competitor for further processing, Annual data
N> Your Division makes a part that can either be sold to outside customers or transferred internally to Division Competitor for further processing, Annual data relating to this part are as follows: Annual production capacity Demand Selling price of the item to outside 95,000 units 80,000 units customers $75 $37 Variable cost per unit Fixed cost per unit S8 Division Competitor requires 15,000 units per year and is currently paying an outside supplier $33 per unit If the transfer is made, $5 per unit of variable costs can be saved What is the lowest acceptable transfer price from the viewpoint of the solling division for each of the 15,000 units needed by the other division? O $37 0 532 O 575 $40 570
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