Raven,Inc.has a division that manufactures a component that sells for $195 and has a variable cost of $30.Another division of the company wants to purchase the component.Fixed cost per unit of the component is $20.What is the minimum transfer price if the division is operating below its capacity?
A) $195
B) $30
C) $50
D) $20

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The Answer of Raven,Inc.has a division that manufactures a component that sells for $195 and has a variable cost of $30.Another division of the company wants to purchase the component.Fixed cost per unit of the component is $20.What is the minimum transfer price if the division is operating below its capacity?
A) $195
B) $30
C) $50
D) $20

Raven,Inchas a Division That Manufactures a Component That Sells for $195