Question: Division B uses the output from division A. There is an unlimited demand from the outside market for division As output for $250 each. The

Division B uses the output from division A. There is an unlimited demand from the outside market for division As output for $250 each. The following is the information about division A. Production capacity is fixed at 200 units and division A is performing below capacity. Variable manufacturing cost is $ 50 per unit. Fixed costs equal $ 20000. What is the transfer price according to the general transfer pricing rule?

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