Question 17

The Wood Division of Sandhill Products Inc. manufactures wood mouldings and sells them externally for $165. Its variable cost is $36 per unit, and its fixed cost per unit is $15. Sandhill's president wants the Wood Division to transfer 5500 units to another company division at a price of $51.

Assuming the Wood Division has available capacity of 5500 units, the minimum transfer price it should accept is

$165.

$15.

$51.

$36.