Use the Following Information for Questions

question 60

Multiple Choice

Use the following information for questions
The Wood Division of Fir Products, Inc. manufactures rubber moldings and sells them externally for $55. Its variable cost is $25 per unit, and its fixed cost per unit is $7. Fir's president wants the Wood Division to transfer 5,000 units to another company division at a price of $32.
-Assuming the Wood Division has available capacity of 5,000 units, the minimum transfer price it should accept is

• A) $7.
• B) $25.
• C) $32.
• D) $55.