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The Interior Division at Kate Spade produces parts that Exterior Division could use. The variable cost of the parts is $23.50 per unit and the
The Interior Division at Kate Spade produces parts that Exterior Division could use. The variable cost of the parts is $23.50 per unit and the total manufacturing cost is $30 per unit. The purchasing price paid by Exterior to an outside supplier is $35 and Exterior is purchasing 51.000 units. The selling price charged by Interior to outside customers is $37. Suppose the transfer price is $32.50 per unit, what is the total amount Exterior could save by Internal transfer? Multiple Choice O $252,500 $177,500 $227.500 $127,500
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