Q19

Division A produces a product that it sells to the outside market. It has compiled the following: Variable manufacturing cost per $12 unit $3 $161000 $30000 Variable selling costs per unit Total fixed manufacturing costs Total fixed selling costs Per unit selling price to outside buyers Capacity in units per year $40 30000 Division B of the same company is currently buying an identical product from an outside provider for $38 per unit. It wishes to purchase 5000 units per year from Division A. Division A is currently selling 26000 units of the product per year. If the internal transfer is made Division A will not incur any selling costs. What would be the minimum transfer price per unit that Division A would be willing to accept? O $12.00 $40.00 $16.20 O $17.00