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Question 27 Division A produces a product that it sells to the outside market. It has compiled the following: Variable manufacturing cost per unit Variable
Question 27 Division A produces a product that it sells to the outside market. It has compiled the following: Variable manufacturing cost per unit 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 $14 $3 $155000 $30000 $47 30000 Division B of the same company is currently buying an identical product from an outside provider for $36 per unit. It wishes to purchase 4400 units per year from Division A. Division A is currently selling 26600 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? 0 O $14.00 $18.00 O $20.82 O $47.00
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