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The Alpha Division of a company, which is operating at capacity, produces and sells 500 units of a certain electronic component in a perfectly competitive
The Alpha Division of a company, which is operating at capacity, produces and sells 500 units of a certain electronic component in a perfectly competitive market. Revenue and cost data are as follows: |
Sales | $ 12,500 |
Variable costs | 7,500 |
Fixed costs | 2,500 |
The minimum transfer price that should be charged to the Beta Division of the same company for each component is: A. $5 B. $15 C. $20 D. $25 |
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