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Question 5 (2 points) Using the general transfer pricing rule, the minimum transfer price from the seller division's point of view is calculated as follows:

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Question 5 (2 points) Using the general transfer pricing rule, the minimum transfer price from the seller division's point of view is calculated as follows: Variable cost/unit on external transfer + Total lost contribution margin on internal salesumber of units transferred internally Variable cost/unit on external transfer + Total lost contribution margin on external salesumber of units transferred Internally Variable cost/unit on internal transfer + Total lost contribution margin on external salesumber of units transferred externally Variable cost/unit on internal transfer + Total lost contribution margin on external salesumber of units transferred internally Next Page Page 5 of 15

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