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The Plum Division of Fruit Corp. manufactures and sells its decanters for $44.00 per unit. Each decanter sold externally yields a $24.00 contribution margin. Plum's
The Plum Division of Fruit Corp. manufactures and sells its decanters for $44.00 per unit. Each decanter sold externally yields a $24.00 contribution margin. Plum's fixed costs per unit are $5.60. The Wine Division wants to purchase 5,000 decanters at $25.60 per unit. Plum can save $2.40 variable cost per unit by selling internally to Wine. If Plum has sufficient capacity to fill Wine's order, what is the minimum transfer price it should accept? O $21.60 O $20.00 O $17.60 O $23.20
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