Question: Question 5 (2.5 points) Division Q makes a part with the following characteristics: Production capacity in units 50,000 units Sales to outside customers 50,000 units
Question 5 (2.5 points) Division Q makes a part with the following characteristics: Production capacity in units 50,000 units Sales to outside customers 50,000 units Selling price to outside customers $80 Variable cost per unit $50 Total fixed costs $300,000 Division R, another division of the same company, would like to purchase 6.000 units of the part each period from Division Q. Division R is now purchasing these parts from an outside supplier at a price of $78 each. Managers of each division are free to make decisions related to purchases and sales of its own products. The minimum transfer price is: $50 $80 O $60 $78
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