Question: TB MC Qu . 1 5 - 8 8 ( Static ) The Hinges Division of Altoona... The Hinges Division of Altoona Corporation sells 8

TB MC Qu.15-88(Static) The Hinges Division of Altoona...
The Hinges Division of Altoona Corporation sells 80,000 units of part Z-25 to the outside market Part Z-25 sells for $40 and has a variable cost per unit of $22 and a fixed cost per unit of $10. The Hinges Division has a capacity to produce 100,000 units per period. The Door Division currently purchases 10,000 units of part Z-25 from the Hinges Division for $40. The Door Division has been approached by an outside supplier willing to supply the parts for $36. If Altoona uses a negotiated transfer pricing system, what is the maximum transfer price that should be charged for this transaction?
TB MC Qu . 1 5 - 8 8 ( Static ) The Hinges

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