A Division Can Sell Externally for $60 Per Unit

question 104

Multiple Choice

A division can sell externally for $60 per unit. Its variable manufacturing costs are $35 per unit, and its variable marketing costs are $12 per unit. What is the opportunity cost of transferring internally, assuming the division is operating at capacity?

• A) $13.
• B) $25.
• C) $35.
• D) $47.