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Division A produces a product that it sells to the outside market. It has compiled...

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Accounting

Division A produces a product that it sells to the outside market. It has compiled the following:
Variable manufacturing cost per unit $10
Variable selling costs per unit $3
Total fixed manufacturing costs $150,000
Total fixed selling costs $30,000
Per unit selling price to outside buyers $40
Capacity in units per year 30,000
Division B of the same company is currently buying an identical product from an outside provider for $38 per unit. It wishes to purchase 5,000 units per year from Division A. Division A is currently selling 30,000 units of the product per year. If the internal transfer is made, Division A will not incur any selling costs. What would be the minium transfer price per unit that Division A would be willing to accept?
a.30
b.10
c.40
d.11.

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