Garvey Company's records reveal the following: The variable costs of Division B will be incurred whether it buys from Division A or from an outside supplier. If Division A is working at full capacity, the best transfer price from the viewpoint of the company as a whole would be:
A) $24
B) $75
C) $51
D) $105

Question

Garvey Company's records reveal the following:  The variable costs of Division B will be incurred whether it buys from Division A or from an outside supplier. If Division A is working at full capacity, the best transfer price from the viewpoint of the company as a whole would be:
A) $24 
B) $75 
C) $51 
D) $105

Quizplus · Accepted Answer

The Answer of Garvey Company's records reveal the following:  The variable costs of Division B will be incurred whether it buys from Division A or from an outside supplier. If Division A is working at full capacity, the best transfer price from the viewpoint of the company as a whole would be:
A) $24 
B) $75 
C) $51 
D) $105

Garvey Company's Records Reveal the Following: the Variable Costs