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NE 6.4 Choosing Transfer Prices for Planning and Control LO 5 Division A makes 100 units of a product. The fixed cost is 200, and
NE 6.4 Choosing Transfer Prices for Planning and Control LO 5 Division A makes 100 units of a product. The fixed cost is 200, and the variable cost is 5 per unit. Division B of the same company purchases the product from Division A. It adds 3 per unit and sells the product to an outside buyer for 13 per unit. What is the profit of the two divisions with respect to this product if the transfer price is 8 per unite
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