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The Wand Division of Ollivander's, Inc. manufactures dragon-heartstring wands and sells them externally for $50. Its variable cost for external sales is $20 per unit,
The Wand Division of Ollivander's, Inc. manufactures dragon-heartstring wands and sells them externally for $50. Its variable cost for external sales is $20 per unit, and its fixed cost per unit is $7. Ollivander's president wants the Wand Division to transfer 5,000 units to another company division at a price of $32. If transferred internally, Ollivander's will save $3 on variable distribution costs and $1 variable on marketing costs. Assuming the Wand Division does not have any available capacity, the minimum transfer price it should accept is: $32 $20 $46 $53 Wand Division should not accept this order because they have no available capacity
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