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Question 24 Arian International Corporation has two divisions, Division A and Division B. Division A produces a motor that sells for $88 per unit, with the following costs based on its capacity of 183,000 units: Direct materials $29 Direct labour 25 Variable overhead 10 Fixed overhead 9 Division A is operating at 70% of normal capacity and Division B is purchasing 26,500 units of the same component from an outside supplier for $84 per unit. Calculate the benefit, if any, to Division A in selling to Division B the 26,500 units at the outside supplier's price. Benet Calculate the lowest price Division A would be willing to accept. as: Lowest price LINK TO TEXT If Division A is operating at full capacity, what would be the lowest transfer price that it is willing to accept? Lowest transfer price $|