Use the Following Information for Questions

question 133

Multiple Choice

Use the following information for questions
Management of the Catering Company would like the Food Division to transfer 10,000 cans of its final product to the Restaurant Division for $30. The Food Division sells the product to customers for $70 per unit. The Food Division's variable cost per unit is $35 and its fixed cost per unit is $10.
-If the Food Division is currently operating at full capacity, what is the minimum transfer price the Food Division should accept?

• A) $30
• B) $35
• C) $45
• D) $70