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NE 6.5 Choosing Transfer Prices LO 5 Division A makes 100 units of a product for a fixed cost of $200 and a variable cost

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NE 6.5 Choosing Transfer Prices LO 5 Division A makes 100 units of a product for a fixed cost of $200 and a variable cost of $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. Division A con sell the 100 units of the intermediate product to an outside buyer for $11 per unit. What should be the transfer price? What decentralized decision does Division B reachShow why this decision is correct for the entire organization

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