Question: A division can sell externally for $85 per unit. Its variable manufacturing costs are $48 per unit, and its variable marketing costs are $16 per

A division can sell externally for $85 per unit. Its variable manufacturing costs are $48 per unit, and its variable marketing costs are $16 per unit. What is the optimal transfer price for transferring internally, assuming the division is operating at capacity?

a) $85 - b) $37 - c$48 - d) $69

My answer is C $48....correct?

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