Question 24 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 $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 O O O At the lowest price that is acceptable to Division A. At the maximum price that is acceptable to Division B. It depends on the negotiation skills of the division managers. No transfer will occur.