Question: Dockside Enterprises, Incorporated operates two divisions: (1) a management division that owns and manages bulk carriers on the Great Lakes and (2) a repoir division

Dockside Enterprises, Incorporated operates two divisions: (1) a management division that owns and manages bulk carriers on the Great Lakes and (2) a repoir 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 $43 per labor-hour, has a backlog of work for outside ships, and charges $83 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 $53 per hour, including leasing an adequate work ares. What is the maximum transfer price per hour that the management division should pay? Multiple Choice $40 $43 553
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