Question: *** I will only rate if you work out the problem & it is correct!**** The Wood Division of Fir Products, Inc. manufactures rubber moldings

*** I will only rate if you work out the problem & it is correct!****

The Wood Division of Fir Products, Inc. manufactures rubber moldings and sells them externally for $55. Its variable cost is $25 per unit, and its fixed cost per unit is $7. Fir's president wants the Wood Division to transfer 5,000 units to another company division at a price of $32. Assuming the Wood Division has available capacity of 5,000 units, the minimum transfer price it should accept is

$55.

$7.

$25.

$32.

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