PRINTER VERSION BACK MEET Question 24 Arian International Corporation has two divisions, Division A and Division B. Division A produces a motor that sells for $84 per unit, with the following costs based on its capacity of 186,000 units: Direct materials $30 Direct labour 23 Variable overhead Fixed overhead Division A is operating at 70% of normal capacity and Division B is purchasing 20,500 units of the same component from an outside supplier for $78 per unit Calculate the benefit, if any, to Division A in selling to Division B the 20,500 units at the outside supplier's price Benefits LINK TO TEXT Calculate the lowest price Division A would be willing to accept Lowest price If Division A is operating at full capacity, what would be the lowest transfer price that it is willing to accept? Lowest transfer price