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The Wood Division of Fir Products, Inc. manufactures wood mouldings and sells them externally for $185. Its variable cost is $44 per unit, and its
The Wood Division of Fir Products, Inc. manufactures wood mouldings and sells them externally for $185. Its variable cost is $44 per unit, and its fixed cost per unit is $18. Fir's president wants the Wood Division to transfer 4100 units to another company division at a price of $62.
Assuming the Wood Division has available capacity of 4100 units, the minimum transfer price it should accept is
a)$18.
b)$44.
c)$62.
d)$185.
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