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Division A of Chappelle Company has the capacity for making 3,200 motors per month and...

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Accounting

Division A of Chappelle Company has the capacity for making 3,200 motors per month and regularly sells 2,000 motors each month to outside customers at a contribution margin of $64 per motor. The variable cost per motor is $37.70. Division B of Chappelle Company would like to obtain 1,600 motors each month from Division A. What should be the lowest acceptable transfer price from the perspective of Division A?

Multiple Choice

$37.70

. $29.07.

$64.00.

$53.70.

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