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The Wood Division of Waterway Industries manufactures rubber moldings and sells them externally for $50. Its variable cost is $35 per unit, and its fixed
The Wood Division of Waterway Industries manufactures rubber moldings and sells them externally for $50. Its variable cost is $35 per unit, and its fixed cost per unit is $9. Waterways president wants the Wood Division to transfer 6000 units to another company division at a price of $34. Assuming the Wood Division has available capacity of 6000 units, the minimum transfer price it should accept is $35. $50. $34. $9.
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