Use the Following Information for the Next 2 Questions

question 6

Multiple Choice

Use the following information for the next 2 questions.
The Kelso Division produces and sells a product to external and internal customers. Per-unit information about its operations include:
-If Kelso has sufficient excess capacity to meet internal demand, what should be the transfer price for Kelso's product?

• A) $245
• B) $250
• C) $115
• D) $185