Dockside Enterprises Incorporated operates two divisions: (1) a management division that owns and manages bulk carriers on the Great Lakes and (2) a repair division that operates a dry dock in Tampa, Florida. The repair division works on company ships and outside large-hull ships. The repair division has an estimated variable cost of $30 per labor-hour, has a backlog of work for outside ships, and charges $72 per hour for labor, which is standard for this type of work. The management division complained that it could hire its own repair workers for $40 per hour, including leasing an adequate work area. If the repair division had idle capacity, what is the minimum transfer price that the repair division should obtain? Multiple Choice $72 O $30 $40 $42