Question: A division can sell externally for $95 per unit. Its variable manufacturing costs are $55 per unit, and its variable marketing costs are $19 per
A division can sell externally for $95 per unit. Its variable manufacturing costs are $55 per unit, and its variable marketing costs are $19 per unit. What is the optimal transfer price for transferring internally, assuming the division is operating at capacity?
A-$74.
B-$55.
C-$19.
D-$95.
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