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Timekeeper Corporation has two divisions, Distribution and Manufacturing The company's primary product is high-end watches Each division's costs are provided below Manufacturing. Variable costs per

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Timekeeper Corporation has two divisions, Distribution and Manufacturing The company's primary product is high-end watches Each division's costs are provided below Manufacturing. Variable costs per unit $3.35 Distribution Variable costs per unit $0.60 The Distr/bution Division has been operating at a capacity of 4,006,000 units a week and usually purchases 2,003,000 units from the Manufacturing Division and Fixed costs per unit $9.24 Flxed costs per unit $1.20 2.003,000 units from other suppliers at $10 50 per unit What's the transfer price per watch from the Manufacturing Division to the Distribution Division, assuming the method used to place a value on each watch is 160% of variable costs? OA. $3.35 B. $715 O C. $368 O D. $5 36

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