Use the Following Information for Questions

question 31

Multiple Choice

Use the following information for questions
The Wood Division of Fir Products, Inc.manufactures wood mouldings and sells them externally for $110.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 does NOT have any available capacity, the minimum transfer price it should accept is

• A)$14.
• B)$40.
• C)$54.
• D)$110.

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