Question 16 Division A produces a product that it sells to the outside market. It...
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Question 16 Division A produces a product that it sells to the outside market. It has compiled the following: $11 $3 Variable manufacturing cost per unit Variable selling costs per unit Total fixed manufacturing costs Total fixed selling costs Per unit selling price to outside buyers Capacity in units per year $145000 $30000 $44 30000 Division B of the same company is currently buying an identical product from an outside provider for $42 per unit. It wishes to purchase 4100 units per year from Division A. Division A is currently selling 30000 units of the product per year. If the internal transfer is made, Division A will not incur any selling costs. What would be the minimum transfer price per unit that Division A would be willing to accept? O $11 O $12 O $42 o $44
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