The Orange Division of Citrus Corp. manufactures and sells its juicers for $110.00 per unit....
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The Orange Division of Citrus Corp. manufactures and sells its juicers for $110.00 per unit. Each juicer sold externally yields a $60.000 contribution margin. Oranges fixed costs per unit are $14.00. The Lemon Division wants to purchase 5,000 juicers at $64.00 per unit. Orange can save $6.00 by selling internally to Lemon. If Orange is already operating at full capacity, what is the minimum transfer price it should accept?
A : $54
B : $58
C : $104
D : $110
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