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Question 16 (4 points) The Southern Division of Barstol Company makes and sells a single product, which is a part used in manufacturing trucks. The
Question 16 (4 points) The Southern Division of Barstol Company makes and sells a single product, which is a part used in manufacturing trucks. The annual production capacity is 48,000 units The variable cost of each unit is $47. Presently the Southern Division sells 43,000 units per year to outside customers at $59 per unit. The Northern Division of Barstol Company would like to buy 24,000 units a year from Southern to use in its production. The lowest acceptable transfer price from the standpoint of the Southern Division should be: . $47.00 per unit $56.50 per unit $21.50 per unit $59.00 per unit
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