Question: when the selling division cannot fill all its regular orders what is the lowest transfer price it would be willing to accept from the purchasing

when the selling division cannot fill all its regular orders what is the lowest transfer price it would be willing to accept from the purchasing division

a) the market price charged to regular customers less any costs saved by transferring internally

b) the purchasing divisions regular purchase price from its external supplier

c) the full absorption cost of producing a unit of product

d) variable cost of producing and selling a unit of product

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