The Wood Division of Fir Products, Inc. manufactures wood moldings and sells them externally for $100. Its

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The Wood Division of Fir Products, Inc. manufactures wood moldings and sells them externally for $100. Its variable cost is $40 per unit, and its fixed cost per unit is $14. Fir's president wants the Wood Division to transfer 5,000 units to another company division at a price of $54. Assuming the Wood Division has available capacity of 5,000 units, the minimum transfer price it should accept is which of the following?
a. $14
b. $40
c. $54
d. $100
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Managerial Accounting Tools for business decision making

ISBN: 978-0470477144

5th edition

Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso

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