Management of the Catering Company would like the Food Division to transfer 10,000 cans of its final product to the Restaurant Division for HK$30. The Food Division sells the product to customers for HK$70 per unit. The Food Division’s variable cost per unit is HK$35 and its fixed cost per unit is HK$10. If the Food Division has 10,000 units available capacity, what is the minimum transfer price the Food Division should accept?

a. HK$30
b. HK$35
c. HK$45
d. HK$70

Answer rating: 100% (QA)

option C is correct HK 45 Transfer price V... View the full answer