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The Wood Division of Bonita Industries manufactures rubber moldings and sells them externally for $50. Its variable cost is $25 per unit, and its fixed
The Wood Division of Bonita Industries manufactures rubber moldings and sells them externally for $50. Its variable cost is $25 per unit, and its fixed cost per unit is $5. Bonitas president wants the Wood Division to transfer 5500 units to another company division at a price of $32. Assuming the Wood Division does not have any available capacity, the minimum transfer price it should accept is $5. $50. $32. $25.
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