Rollins, Inc. has a division that manufactures a component that sells for

$250

and has a variable cost of

$125.

Another division of the company wants to purchase the component. Fixed cost per unit of the component is

$54.

What is the minimum transfer price if the division manufacturing the component is operating below its capacity?

Question content area bottom

Part 1

A.

$54

B.

$250

C.

$125

D.

$179