Division D of the same company would like to use the part manufoctured by Division...
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Division D of the same company would like to use the part manufoctured by Division C in one of its products. Division D currently purchases a similar part made by an outside company for $47 per unit and would substitute the part made by Dlvision C. Dlvision D requires 5,530 units of the part each perlod. Division C has ample excess capacity to handle all of DMision D's needs without any Increase in flixed costs and without cutting into outside sales. What is the lowest acceptable transfer price from the tandpoint of the selling division
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