Current Attempt in Progress Your answer is incorrect. Division A produces a product that it sells to the outside market. It has compiled the following: 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 $10 $3 $150,000 $30,000 eTextbook and Media $40 30,000 Division B of the same company is currently buying an identical product from an outside provider for $38 per unit. It wishes to purchase 5,000 units per year from Division A. Division A is currently selling 25,000 units of the product per year. If the internal transfer is made, Division A will not incur any selling costs. At what price would the internal transfer occur? O At the maximum price that is acceptable to Division B. At the lowest price that is acceptable to Division A. O It depends on the negotiation skills of the division managers. O No transfer will occur. Save for Later Last saved 36 minutes ago. Saved work will be auto-submitted on the due date. Auto- submission can take up to 10 minutes. Attempts: 1 of 2 used Submit Answer

Current Attempt in Progress 2. Your answer is incorrect. Division A produces a product that it selis to the outside market. it has complled the following: Division B of the same company is currently buying an identical product from an outside provider for $38 per unit it wishes to purchase 5,000 units per year from Division A Division A is currently selling 25,000 units of the product per year. If the internal transfer is made, Division A will not incur any selling costs. At what price would the internal transfer occur? At the maximum price that is acceptable to Division B. At the lowest price that is acceptable to Division A. It depends on the negotiation skills of the division managers. No transfer willoccur. eTextbook and Medla Last saved 36 minutes ago. Attempts: 1 of 2 used Saved work will be auto-submitted on the due date. Autosubmission can take up to 10 minutes