The National Division of Roboto Company is buying 10,000 widgets from an outside supplier at $30 per unit. Roboto's Overseas Division, which is producing and selling at full capacity (12,000 units) , has the following sales and cost structure: Sales price per unit $45.00
Variable cost per unit 22.50
Fixed cost (at capacity) per unit 15.00
If the National Division buys its 10,000 widgets from the Overseas Division, the transfer price should be:
A) $45.00
B) $30.00
C) $22.50
D) $37.50
Correct Answer:
Verified
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