Robin Company records reveal the following: The variable costs of Division Y will be incurred whether it buys from Division X or from an outside supplier. If Division X is not at full capacity, the lowest transfer price at which it would be willing to sell to Division Y would be:
A) $24
B) $8
C) $32
D) $22

Question

Robin Company records reveal the following:  The variable costs of Division Y will be incurred whether it buys from Division X or from an outside supplier. If Division X is not at full capacity, the lowest transfer price at which it would be willing to sell to Division Y would be:
A) $24 
B) $8 
C) $32 
D) $22

Quizplus · Accepted Answer

The Answer of Robin Company records reveal the following:  The variable costs of Division Y will be incurred whether it buys from Division X or from an outside supplier. If Division X is not at full capacity, the lowest transfer price at which it would be willing to sell to Division Y would be:
A) $24 
B) $8 
C) $32 
D) $22

Robin Company Records Reveal the Following: the Variable Costs