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  1. business
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  3. division b has variable manufacturing costs of $57

Division B has variable manufacturing costs of $57 per unit and fixed costs of $12...

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Accounting

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Division B has variable manufacturing costs of $57 per unit and fixed costs of $12 per unit. Assuming that Division B is operating significantly below capacity, what is the opportunity cost of an internal transfer when the market price is $82? O $0. O $25. $57. O $69. Division A makes a part that it sells to customers outside of the company. Data concerning this part appear below: $ 80 59 Selling price to outside customers Variable cost per unit Total fixed costs Capacity in units $450,000 30.000 Division B of the same company would like to use the part manufactured by Division A in one of its products. Division B currently purchases a similar part made by an outside company for $75 per unit and would substitute the part made by Division A. Division B requires 5,500 units of the part each period. Division A can already sell all of the units it can produce on the outside market. What should be the lowest acceptable transfer price from the perspective of Division A? O $80. $74. $15. O $59

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