Transfer pricing Peyvandi Co., a profit center of California Enterprises, manufactures Product BP3751-9S to sell internally to other company divisions as well as externally. One unit of Product BP3751-95 sells for $108. Production and selling costs for a unit of Product BP3751-95 follow. * Based on production of 1,400,000 units. Andersen Co., another division of California Enterprises, wants to purchase 50,000 units of Product BP3751-9S from Peyvandi Co. during the next year. No selling costs are incurred on internal sales. a. All the units of Product BP3751-9S that can be produced by Peyvandi Enterprises can be sold externally. What should the minimum transfer price be? per unit b. Assume that Peyvandi Co. is experiencing a slight slowdown in external demand and will be able to sell only 1,200,000 units of Product BP3751-9S externally next year at the $108 selling price. What hould be the minimum selling price to Andersen Co. under these conditions? per unit