Kent 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 working at full capacity, the best transfer price from the viewpoint of the company as a whole would be:
A) $24
B) $32
C) $8
D) $42

Question

Kent 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 working at full capacity, the best transfer price from the viewpoint of the company as a whole would be:
A) $24 
B) $32 
C) $8 
D) $42

Quizplus · Accepted Answer

The Answer of Kent 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 working at full capacity, the best transfer price from the viewpoint of the company as a whole would be:
A) $24 
B) $32 
C) $8 
D) $42

Kent Company Records Reveal the Following: the Variable Costs