Given the Following Data for Division A: Assume That Division

question 13

Multiple Choice

Given the following data for Division A: Assume that Division A is selling all it can produce to outside customers.If it sells to Division B,$1 can be avoided in variable cost per unit.Division B is presently purchasing from an outside supplier at $38 per unit.From the point of view of the company as a whole,any sales to Division B should be priced at

• A)$40.
• B)$39.
• C)$38.
• D)$37.
• E)The company would not want the transfer to take place.

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