Question: Accounting Question 21 10 points Save Answer Your Division makes a part that can either be sold to outside customers or transferred internally to Division

Accounting

Accounting Question 21 10 points Save Answer Your Division makes a part

Question 21 10 points Save Answer Your Division makes a part that can either be sold to outside customers or transferred internally to Division Competitor for further processing. Annual data relating to this part are as follows: Annual production capacity 80,000units Demand 80,000units Selling price of the item to outside customers..... $35 Variable cost per unit $23 Fixed cost per unit $5 Division Competitor requires 15,000 units per year and is currently paying an outside supplier $33 per unit. If the transfer is made, $3 per unit of variable costs can be saved. What is the lowest acceptable transfer price from the viewpoint of the selling division for each of the 15,000 units needed by the other division? $25 O $23 O $20 $32

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