Question: Question 3 (2.5 points) Division A makes a part with the following characteristics: Production capacity in units 30,000 units Sales to outside customers 24,000 units

 Question 3 (2.5 points) Division A makes a part with the

Question 3 (2.5 points) Division A makes a part with the following characteristics: Production capacity in units 30,000 units Sales to outside customers 24,000 units Selling price to outside customers $130 Variable cost per unit $20 Total fixed costs $120,000 Division B, another division of the same company, would like to purchase 5,000 units of the part each period from Division A. Division B is now purchasing these parts from an outside supplier at a price of $28 each Managers of each division are free to make decisions related to purchases and sales of its own products. The minimum transfer price is: $20 $28 $24 $30

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