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The Wood Division of Bonita Industries manufactures rubber moldings and sells them externally for $45. Its variable cost is $25 per unit, and its fixed
The Wood Division of Bonita Industries manufactures rubber moldings and sells them externally for $45. Its variable cost is $25 per unit, and its fixed cost per unit is $6. Bonita's president wants the Wood Division to transfer 4400 units to another company division at a price of $26. Assuming the Wood Division has available capacity of 4400 units, the minimum transfer price it should accept is O $25. O $6. $45. O $26
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